Biden Claims Wages Up Faster Than Inflation, Blames Gas Prices on OPEC and Russia

On November 2, 2021, President Joe Biden held a press conference at which he made several claims about the economy that drew immediate scrutiny. Biden asserted that wages had risen faster than inflation, blamed high gas prices on OPEC and Russia’s refusal to pump more oil, brushed off Senator Joe Manchin’s public opposition to his $1.75 trillion spending bill, described China’s hypersonic missile tests as “competition,” and called on reporters from what appeared to be a pre-approved list. The press conference came as inflation had reached a 13-year high and just one day before the Virginia gubernatorial election, which Biden predicted Democrats would win.

Biden’s Wage and Inflation Claim

A reporter opened by pressing Biden on the economic pain Americans were feeling, noting that it was “not just gas prices” but also rents and everyday items, with U.S. inflation at a 13-year high. The reporter asked when Americans could expect prices to come down.

Biden acknowledged that prices were elevated but attributed the increases primarily to COVID-related supply chain disruptions. He then made his most contentious economic claim of the press conference, drawing a favorable comparison to the previous Thanksgiving.

“Last Thanksgiving I sat down with my wife, my daughter, and my son. This Thanksgiving we’re all in a very different circumstance. Things are a hell of a lot better,” Biden said. “And the wages have gone up higher, faster than inflation. And we have generated — if you take a look at what economy is growing, United States, it’s growing. It has problems, mainly because of COVID and supply chain.”

The claim that wages had outpaced inflation was disputed by economists and media fact-checkers at the time. While nominal wages had indeed risen, real wages adjusted for inflation were declining for many workers, meaning the purchasing power of paychecks was actually shrinking. The Bureau of Labor Statistics data available at the time showed that real average hourly earnings had declined on a year-over-year basis, contradicting Biden’s assertion.

Blaming OPEC and Russia for Gas Prices

On gas prices, Biden pointed the finger squarely at foreign oil producers rather than domestic energy policy. “If you take a look at gas prices and you take a look at oil prices, that is a consequence of, thus far, the refusal of Russia or the OPEC nations to pump more oil,” he said.

The explanation drew criticism from Republicans who argued that the administration’s own actions had contributed to higher energy costs. Biden had canceled the Keystone XL pipeline permit on his first day in office, paused new federal oil and gas leasing, and imposed new regulations on the energy sector. Critics argued that these decisions had signaled to domestic producers that they should not invest in new capacity, contributing to the supply constraints that were driving prices higher.

Biden also cited 17 Nobel laureates in economics who he said had concluded that his spending agenda would “lower inflation, raise wages, increase competition.” The reference to the economists’ letter became a recurring talking point for the administration, though critics noted that the letter addressed the long-term effects of the Build Back Better framework rather than the immediate inflationary pressures Americans were experiencing at the grocery store and gas pump.

Manchin’s “Devastating” Statement Brushed Aside

Just hours before Biden’s press conference, Senator Joe Manchin (D-WV) had delivered a public statement that dealt a severe blow to Biden’s domestic spending agenda. Manchin declared: “I will not support a reconciliation package that expands social programs and irresponsibly adds to our $29 trillion in national debt that no one seems to really care about or even talk about.”

Manchin went further, connecting his opposition directly to inflation: “Nor will I support a package that risks hurting American families suffering from historic inflation. Simply put, I will not support a bill that is this consequential without thoroughly understanding the impact that it’ll have on our national debt, our economy, and most importantly, all of our American people.”

Despite the devastating nature of the statement from a senator whose vote was essential for passage, Biden appeared largely unfazed during the press conference. He suggested that his conversations with Manchin were ongoing and that the West Virginia senator’s concerns could be addressed as they worked through the text of the legislation.

China as “Competition” and COP26

Biden was also asked about China’s military buildup, including the expansion of missile silo fields and the testing of hypersonic nuclear-capable missiles. Rather than framing these developments as a threat, Biden used a softer term, calling them “competition.”

On climate, Biden had just arrived from the COP26 summit in Glasgow and was eager to talk about American leadership. He criticized both China’s President Xi Jinping and Russia’s President Putin for their absence from the summit, arguing that their failure to show up undermined their claims to global leadership.

“The single most important thing that’s gotten the attention of the world is climate, everywhere from Iceland to Australia,” Biden said. He argued that China’s absence was particularly notable: “How do you do that and claim to be able to have any leadership?”

On Russia, Biden pointed to environmental crises within Russia’s own borders. “His tundra is burning,” Biden said of Putin. “He has serious, serious climate problems, and he is mum on the willingness to do anything.”

Biden also referenced praise he said he received from other world leaders at the summit, a claim he acknowledged “sounds awfully self-serving.”

The Pre-Approved Reporter List

One of the more notable moments from the press conference was Biden’s apparent reliance on a prepared list of reporters to call on for questions. At several points during the event, Biden appeared to read names from notes in front of him, calling on reporters by name and outlet in a sequence that suggested the order had been predetermined.

At one point, Biden stumbled through the list, calling on the wrong reporter, then correcting himself. “I’m sorry, Jen Epstein, Wall Street Journal — I mean, excuse me, Bloomberg,” he said, adding with a personal note: “Especially since my granddaughter works for you guys, in a different circumstance.” He then said, “I call on the Wall Street Journal, Catherine. I got the wrong one. Sorry.”

The use of a pre-approved list for press conference questions was not new for the Biden White House, but it drew renewed attention each time it was observed, with critics arguing it allowed the administration to avoid hostile or unexpected questions.

The Virginia Prediction

With the Virginia gubernatorial election just one day away, Biden was asked whether Democrat Terry McAuliffe’s struggles in a state Biden had won by 10 points should be seen as a rebuke of his presidency. Biden dismissed the concern flatly: “We’re gonna win. I think we’re gonna win in Virginia.”

Republican Glenn Youngkin would win the Virginia governor’s race the following day, dealing a significant political blow to the Biden administration and fueling narratives about a backlash against the president’s agenda.

Key Takeaways

Biden claimed wages had risen “higher, faster than inflation” at a press conference on November 2, 2021, a claim disputed by real wage data showing purchasing power was declining for many workers as inflation hit a 13-year high.
He blamed high gas prices on OPEC and Russia’s refusal to pump more oil rather than domestic energy policy decisions, while citing 17 Nobel laureates who said his spending plan would “lower inflation, raise wages, increase competition.”
Biden brushed off Manchin’s public opposition to the $1.75 trillion spending bill, predicted Democrats would win the Virginia governor’s race the next day (they lost), and called on reporters from what appeared to be a pre-approved list throughout the press conference.

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