Seven reasons Americans are down on the economy.
By many measures, the U.S. economy is strong right now. Unemployment is near its lowest point in decades. Inflation has slowed down. Wages have grown faster than prices since last year. Stock prices have surged.
But many Americans are not feeling it, and say the economy is in bad shape. The persistent pessimism has baffled many economists.
The situation may be changing. American confidence in the economy has picked up in recent months, surveys show. And President Biden’s campaign hopes the turnaround will boost his re-election prospects.
Still, measures of consumer confidence remain lower than normal. Why have Americans resisted the good economic news? Experts have tried to answer that question for months. Today’s newsletter will cover seven of their leading explanations.
1) Inflation
The first, and most obvious, explanation is rising prices. Historically, Americans hate high inflation. For one, it is universal; high prices affect everyone. In comparison, high unemployment directly affects only a minority, even during recessions.
“When prices rise, it feels like something is taken away from you,” my colleague Jeanna Smialek, who covers the economy, told me.
Inflation
#g-inflation-box {
max-width:600px;
}
#g-inflation-box ,
#g-inflation-box .g-artboard {
margin:0 auto;
}
#g-inflation-box .g-aiAltText {
position: absolute;
left: -10000px;
width: 1px;
height: 1px;
overflow: hidden;
white-space: nowrap;
}
#g-inflation-box p {
margin:0;
}
#g-inflation-box .g-aiAbs {
position:absolute;
}
#g-inflation-box .g-aiImg {
position:absolute;
top:0;
display:block;
width:100% !important;
}
#g-inflation-box .g-aiSymbol {
position: absolute;
box-sizing: border-box;
}
#g-inflation-box .g-aiPointText p { white-space: nowrap; }
#g-inflation-335 {
position:relative;
overflow:hidden;
}
#g-inflation-335 p {
font-family:nyt-franklin,arial,helvetica,sans-serif;
font-weight:500;
line-height:14px;
height:auto;
opacity:1;
letter-spacing:0em;
font-size:13px;
text-align:left;
color:rgb(173,193,216);
top:1px;
position:static;
text-transform:none;
padding-bottom:0;
padding-top:0;
mix-blend-mode:normal;
font-style:normal;
}
#g-inflation-335 .g-pstyle0 {
font-weight:300;
height:14px;
color:rgb(103,103,103);
position:relative;
}
#g-inflation-335 .g-pstyle1 {
height:14px;
position:relative;
}
#g-inflation-335 .g-pstyle2 {
font-weight:700;
height:14px;
color:rgb(0,0,0);
position:relative;
}
#g-inflation-335 .g-pstyle3 {
font-weight:300;
height:14px;
text-align:center;
color:rgb(103,103,103);
position:relative;
}
#g-inflation-600 {
position:relative;
overflow:hidden;
}
#g-inflation-600 p {
font-family:nyt-franklin,arial,helvetica,sans-serif;
font-weight:500;
line-height:15px;
height:auto;
opacity:1;
letter-spacing:0em;
font-size:14px;
text-align:left;
color:rgb(173,193,216);
top:1.1px;
position:static;
text-transform:none;
padding-bottom:0;
padding-top:0;
mix-blend-mode:normal;
font-style:normal;
}
#g-inflation-600 .g-pstyle0 {
font-weight:300;
height:15px;
color:rgb(103,103,103);
position:relative;
}
#g-inflation-600 .g-pstyle1 {
height:15px;
position:relative;
}
#g-inflation-600 .g-pstyle2 {
font-weight:700;
height:15px;
color:rgb(0,0,0);
position:relative;
}
#g-inflation-600 .g-pstyle3 {
font-weight:300;
height:15px;
text-align:center;
color:rgb(103,103,103);
position:relative;
}
+10%
+8
+3.9%
excluding
food and
energy
+6
+4
+3.4%
in Dec.
2023
+2
0
–2
2005
2010
2015
2020
+10%
+8
+3.9%
excluding
food and
energy
+6
+4
+3.4%
in Dec.
2023
+2
0
–2
2005
2010
2015
2020
Public opinion on the U.S. economy
Share of the public, by party, that rate the condition of the national economy as very or fairly good
#g-dem-gop-moods-box {
max-width:600px;
}
#g-dem-gop-moods-box ,
#g-dem-gop-moods-box .g-artboard {
margin:0 auto;
}
#g-dem-gop-moods-box p {
margin:0;
}
#g-dem-gop-moods-box .g-aiAbs {
position:absolute;
}
#g-dem-gop-moods-box .g-aiImg {
position:absolute;
top:0;
display:block;
width:100% !important;
}
#g-dem-gop-moods-box .g-aiSymbol {
position: absolute;
box-sizing: border-box;
}
#g-dem-gop-moods-box .g-aiPointText p { white-space: nowrap; }
#g-dem-gop-moods-335 {
position:relative;
overflow:hidden;
}
#g-dem-gop-moods-335 p {
font-family:nyt-franklin,arial,helvetica,sans-serif;
font-weight:500;
line-height:14px;
height:auto;
opacity:1;
letter-spacing:0em;
font-size:13px;
text-align:left;
color:rgb(0,0,0);
top:1px;
position:static;
text-transform:none;
padding-bottom:0;
padding-top:0;
mix-blend-mode:normal;
font-style:normal;
}
#g-dem-gop-moods-335 .g-pstyle0 {
height:14px;
text-align:right;
position:relative;
}
#g-dem-gop-moods-335 .g-pstyle1 {
height:14px;
position:relative;
}
#g-dem-gop-moods-335 .g-pstyle2 {
font-weight:300;
height:14px;
color:rgb(103,103,103);
position:relative;
}
#g-dem-gop-moods-335 .g-pstyle3 {
font-weight:300;
height:14px;
text-align:center;
color:rgb(103,103,103);
position:relative;
}
#g-dem-gop-moods-600 {
position:relative;
overflow:hidden;
}
#g-dem-gop-moods-600 p {
font-family:nyt-franklin,arial,helvetica,sans-serif;
font-weight:500;
line-height:15px;
height:auto;
opacity:1;
letter-spacing:0em;
font-size:14px;
text-align:left;
color:rgb(0,0,0);
top:1.1px;
position:static;
text-transform:none;
padding-bottom:0;
padding-top:0;
mix-blend-mode:normal;
font-style:normal;
}
#g-dem-gop-moods-600 .g-pstyle0 {
height:15px;
position:relative;
}
#g-dem-gop-moods-600 .g-pstyle1 {
height:15px;
text-align:right;
position:relative;
}
#g-dem-gop-moods-600 .g-pstyle2 {
font-weight:300;
height:15px;
color:rgb(103,103,103);
position:relative;
}
#g-dem-gop-moods-600 .g-pstyle3 {
font-weight:300;
height:15px;
text-align:center;
color:rgb(103,103,103);
position:relative;
}
Trump
inaugurated
Coronavirus
stock crash
Biden
inaugurated
100% of
respondents
75%
Democrats
50%
25%
Republicans
2016
2020
2024
Trump
inaugurated
Coronavirus
stock crash
Biden
inaugurated
100% of respondents
75%
Democrats
50%
25%
Republicans
2016
2018
2020
2022
2024
We are having trouble retrieving the article content.
Please enable JavaScript in your browser settings.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.
Source: Elections - nytimes.com
