Why are Americans so gloomy about their great economy?

[qwlauren35]

https://www.economist.com/united-states/2024/01/14/why-are-americans-so-gloomy-about-their-great-economy

I think there is a firewall. I clipped 4 paragraphs - I think this is a good summation for those who can't see the article.

More recent baselines are even less flattering. Although few Americans would want to go back to a world of covid shutdowns, many did receive big benefits from the government’s spending spree at the time. After-tax personal income is about 15% lower now than in March 2021, when it was propped up by the massive stimulus package passed by Democrats soon after Mr Biden took office. Another unflattering comparison with the recent past: the aggressive interest-rate rises needed to tame inflation have made loans for houses and cars much more expensive. Housing affordability hit its lowest in decades last year, serving as an easy target for critics of Mr Biden. The Republican National Committee says Bidenomics is “pricing out millions of people from the American Dream”.

This suggests a second category of explanation: that opinion polling and sentiment surveys may have a negative bias. Profound partisan hostility is undoubtedly one factor. In their study Messrs Cummings and Mahoney calculated that Republican antipathy towards a Democrat-controlled White House may account for about 30% of the sentiment gap today.

Another element may be the tone of news coverage. Ben Harris and Aaron Sojourner of the Brookings Institution, a think-tank, studied the relationship between economic data and an index of economic news sentiment. Since 2021 the news-sentiment index has, like the consumer-sentiment index, been notably worse than what would be expected from the data. And that may be only scratching the surface. The news-sentiment index, created by the Federal Reserve’s branch in San Francisco, is based on economic articles in major American newspapers. Throw in the vitriol that tends to go viral on social-media platforms, and the negative bias might be even more pronounced.

A final explanation is that there may simply be a long lag between the post-pandemic recovery and feelings about the economy. It has been a topsy-turvy period. The extreme uncertainty of the covid years—job losses, school closures, bankruptcies and illness—took a toll on people. Many are still upset by the bruising battle with inflation. Although inflation has moderated, prices are nearly 20% higher than when Mr Biden took office. The sticker-shock takes some getting used to. Messrs Cummings and Mahoney estimate that a 10% inflation surge reduces consumer sentiment by 35 index points in the year it occurs, 16 points in the next year and eight points the year after that.

[peppertree]

1. Some of it is Farce News and Hate Radio, yes - but the cost of housing is taking its toll too

Most young couples especially, are simply priced out of today's housing market - save for crummy apartments.

8% mortgages (hi, Jerry) aren't helping either.

[bamagal62]

2. Exactly.

I think it’s the news trying to paint a bleak picture and then it’s the housing market. If you have finally decided to bite the bullet and buy, there is absolutely NOTHING on the market to buy. There is also NOTHING to rent. People have no where to go. It’s like we’re all stuck. It’s frustrating. And, so, you have bad attitudes about the economy.

[peppertree]

22. Another legacy of the Bush years, alas

Yes - there's always been that tension between the need for housing, and its value as an investment. Homeownership, and even rent, have always been costly.

But it was in the Bush years that banksters, vulture funds and other casino capitalists really got interested in the large-scale use of housing as leverage for their money laundering, derivatives, or whatever other games they play with other people's money.

But then, who can blame existing homeowners for playing into their hands.

You don't find too many people who, on learning their old fixer-upper is suddenly worth half a million if they can sell it to such characters, would pass up such an offer for the sake of selling it to real people instead.

[jimfields33]

30. I think it's groceries. People gotta eat

And when they spent 100 dollars that a few years ago spent 70 makes people pissed. Yes some went down but not to two year ago levels.

[bamagal62]

33. True.

We were visiting NYC last week
And bought a few groceries. The blueberries were $10.00!!!! We got 2 little bags full for $189.00. Outrageous!

[jimfields33]

44. It is gross.

[samplegirl]

3. Because Republicans try to convince everybody

That are economy is horrible.

[limbicnuminousity]

4. Are?

[GreenWave]

26. Arr mate!

[Tickle]

21. Our, I think you mean and

it's not fun running out of money before your next paycheck

[Rebl2]

23. Along with

the media telling them it’s horrible. I actually saw an advertisement the other night for some investment company (never heard of them and don’t remember who it was) saying how horrific and horrible our economy is.

[WarGamer]

5. no money... work hard but have no money.

[BootinUp]

6. It was only like 2 months ago that CW said we were soon to be in recession

If we allow a little time for the good news to be distributed then I am sure these polls will change accordingly.

[msongs]

7. been to the grocery store lately. nt

[BootinUp]

11. What is your point?

Do you have the receipts?

I am tired of this negative shit on the economy. There has never been a more competent US administration on the economy.

[BannonsLiver]

14. As Americans we have long been spoiled at the grocery store

All of the sudden you can’t get 8 pounds of cheese for $3 or a 60 pack of coke for a 5 spot anymore and it’s the end of the world.

[BootinUp]

15. I understand the current mindset. But

it is going to improve.


Patience.

https://music.

&si=gb0cNBby8nFYEVyu

[BannonsLiver]

16. My patience is intact

I’m talking more about those who constantly belly ache because they can’t 30 cans of tuna for $5 anymore.

[jimfields33]

31. Ok. But 1.99 for one can is insane.

[Polybius]

43. So the poor have no right to complain?

High prices hurt lots of people.

[msongs]

17. people who have to pay for their own food think its still getting more pricey nt

[womanofthehills]

24. Pet food prices - off the wall

Iams mini chunks dog kibble - 15lbs went from $15 to $25 dollars. Cat food has almost doubled too. I want to cry when I buy organic chicken food.

Everytime I shop, food prices are higher than the month before. Where is this going?

[GreenWave]

27. Lettuce not forgot how Trumpified the grocery store owners are.

They want misery for us right now.

[tableturner]

8. GOP messaging takes nothing and makes it something, while Dem messaging takes something and makes it nothing!

Messaging, messaging, messaging...we have the facts and reality on our side, but much of the public does not hear that because Republicans aggressively and repetitively push their lies, while Democrats UNagressively and repetitively push the truth with a level of aggression that invokes the memory of Casper Milquetost. In effect, we repeatedly LET then beat us with total BS!

[doc03]

9. Steak or cheese at $19 a pound. Frozen dinners have doubled.

With a tip a meal at a cheap restaurant is nearly $20. A fast-food meal is over $10. I bought a new car 4 years
ago that stickered for $31000, the same model now is just under $40000. Now they are pushing EVs on us when there is not the infrastructure to support them. I take home $50 more on SS after Medicare and tax withholding. My electric bill went up 25%, Cable or satellite TV have gone up, internet increased. My garbage collector put a $6 surcharge on garbage pickup. Real estate prices seem like they have more than doubled. Most people have never experienced inflation unless they were around in the late 70s and that was even worse.

[BootinUp]

10. The disruptions to the economy have not yet settled. eom

[The Revolution]

13. Biden has done an excellent job, but

things are still not great.

I think there is no question that Biden and his administration have done a good job managing the economy. Ultimately, the President has limited control over the economy, but he's done about as well as he could do. The US recovery has fared better than many others.

From a personal perspective, I haven't had a raise in a couple years, but everything is more expensive than it was. So that sucks. I imagine a lot of others are in the same position.

[GoodRaisin]

20. Everything being more expensive is why they are unhappy but

the question is how do you get people who don’t understand macroeconomics to understand that it’s not the President’s policies that are causing prices to be high? Especially, when Republicans are pushing the false narrative that it is all Biden’s fault? They’ve been fed all this horseshit that “Bidenomics are causing the high prices”. How do you get the truth across to ignorant people? That’s the challenge.

[MichMan]

38. It doesn't matter. People always blame whomever is in charge

It just how is always has been and will continue to be.

If Trump was president, everyone here would be blaming him for the very same issues.

[Kennah]

18. Two words: Orange shitgibbon

[Kid Berwyn]

25. "Another element may be the tone of news coverage."

Control what they think and you'll control how they feel.

[LonePirate]

28. Maybe it was in an unsnipped piece of the article but higher food prices seems like the #1 contributor.

[ripcord]

29. Housing has become ridiculous

I don't know how people renting in Los Angeles can make ends meet, $1500 for a studio apartment and it goes way up, if you are paying that much for rent you have to make the price up in other areas of your budget. Check out these apartment listing from Los Angeles

https://www.apartments.com/los-angeles-ca/

[honest.abe]

39. Yep, its cost of housing.

It just keeps going up and up and up. Much faster than wages.

[Tribetime]

32. My opinion inflation

[MichMan]

42. It's right in the OP

"Many are still upset by the bruising battle with inflation. Although inflation has moderated, prices are nearly 20% higher than when Mr Biden took office. The sticker-shock takes some getting used to. Messrs Cummings and Mahoney estimate that a 10% inflation surge reduces consumer sentiment by 35 index points in the year it occurs, 16 points in the next year and eight points the year after that".

[Ace Rothstein]

45. And I don't believe they include groceries in those calculations.

We went from spending about $120-150 weekly to $180-220. Eating out seems to be even worse.

[NCDem47]

34. The economy is great--for the investor class!

Which I have been both in and out of.

Many Americans are trying to make ends meet. They do...not...care about Wall Street or indicies or any other economic speak. What affects them day-in and day-out are income and expenses. Wages, food, housing, transportation, utilities, healthcare. The bare minimum staples that get us through life on a daily basis. These things just "feel" expense right now. Some real. Some perceived.

[Autumn]

35. Rent is too high, home prices are fucking ridiculous and groceries are still sky high.

2 hamburgers with fries and 1 coke at a fast food place will cost 20 dollars. The economy might be great for Wall Street but that doesn't make it good for the average American.

[ScratchCat]

36. There are industries

where the majority of the "owners" are Red Voters. They have and will continue to jack prices as far as they can to try to affect the voting habits of the working people who voted out their orange savior in 2020. This is the main reason why many prices have not come back down. And if someone with an (R) next to their name wins the White House this year, watch grocery prices plummet almost immediately.

[Johnny2X2X]

37. Real wages have risen since pre pandemic

https://home.treasury.gov/news/featured-stories/the-purchasing-power-of-american-households

People have more purchasing power despite the bout of inflation we had to overcome. So in a very real sense, life is more affordable now than in 2019 across all income groups.

So people will lament gorcery prices but not pay attention to the fact that they're making 16% more than they did in 2019.

Things aren't perfect, but by every economic measure the economy is better and people are better off than they were before Covid hit.

[MichMan]

41. Wage growth isn't like COLA where everyone gets an across the board percentage increase.

There are a significant number of people that havent seen their incomes increase by 16% Telling voters they don't know how good they have it, when they see otherwise isn't a successful message, IMO.

From the OP

"Many are still upset by the bruising battle with inflation. Although inflation has moderated, prices are nearly 20% higher than when Mr Biden took office. The sticker-shock takes some getting used to. Messrs Cummings and Mahoney estimate that a 10% inflation surge reduces consumer sentiment by 35 index points in the year it occurs, 16 points in the next year and eight points the year after that."

[Johnny2X2X]

46. And inflation isn't across the board either

Some items go down in price. If you're a home owner with a mortgage, you were locked into lower mortgage payments. If you didn't have to buy a car in the last few years you weren't affected by car prices. People only pay attention when some grocery items go up in price, but there are always some items going down in price too. And gorcery prices are basically flat the last year having risen only 1.7%, but that won't get any headlines.

Some people saw 70% raises (like me), others saw no raise at all. And when energy prices went down it didn't make the headlines like when they went up. So this Winter people are paying less to heat their homes than in the last few seasons and they don't even notice it. Where are the stories about people haviing more money this Winter because their homes are significantly cheaper to keep warm?

It's basically, there's no news unless there's bad news.

On average, Americans are doing better now than before the pandemic. Doesn't mean that everyone is, but it's something Dems need to talk about or no one else will. No matter how great the economy, there are always going to be people struggling, that doesn't mean you ignore all the good news. But overall, things haven't been as good as they are now in a long time.

[Emile]

40. Because of Predatory Capitalists artificial inflation.