Inflation is taking a toll on President Joe Biden’s fixed $400,000 salary, which has seen an 18% decrease in purchasing power since he took office due to rising prices. If inflation continues at its current pace, the president in 2028 will be the worst-paid in American history. This decline in the value of the president’s salary is not a new phenomenon, as history shows fluctuations in the inflation-adjusted value of presidential salaries over the years.
Starting from the late 1700s when the United States had no president, the Founding Fathers ensured that the president would receive a comfortable salary through the Constitution. George Washington took office in 1789 with an annual salary of $25,000, equivalent to $600,000 today. The value of the presidential salary remained relatively stable for nearly 100 years, with occasional drops due to war and inflation.
Abraham Lincoln also experienced a decrease in the value of his $25,000 salary during the Civil War, thanks to rampant printing of greenbacks. Subsequent presidents saw fluctuations in their salaries due to inflation caused by various factors such as military spending. Presidents like William Howard Taft and Woodrow Wilson experienced both highs and lows in the value of their salaries during their time in office.
In more recent history, presidents like Harry Truman and Bill Clinton saw fluctuations in the value of their salaries due to inflation and economic conditions. The last presidential salary increase was in 2001, doubling from an all-time low of $355,000 to $700,000 in today’s dollars. With inflation running above target in recent years, the value of the presidential salary is expected to continue to decrease, potentially dropping below Clinton’s all-time low by 2028.
While President Donald Trump, who has a substantial net worth, may not prioritize raising the presidential salary, President Joe Biden, with a net worth of around $10 million mainly in personal real estate, may see the value in a pay raise. Inflation is a significant factor affecting the value of the president’s salary, with past historical trends showing fluctuations in the purchasing power of the presidential compensation over the years. As inflation continues to impact the economy, the next president’s salary is expected to continue to decrease in value.
