This chapter discusses the possible economic explanations for people's feelings about the economy and the data that may be missing. It examines factors such as stimulus checks and job opportunities for lower-paid workers, as well as the limitations of traditional data. The chapter also highlights the impact of pandemic-specific stability issues on people's financial well-being.
Would you say that you and your family are better off or worse off, financially, than you were a year ago? Do you think in 12 months we'll have good times, financially, or bad? Generally speaking, do you think now is a good time or a bad time to buy a house?
These are the kinds of questions baked into the Consumer Sentiment Index. And while the economy has been humming along surprisingly well lately, sentiment has stayed surprisingly low.
Today on the show: We are really bummed about the economy, despite the fact that unemployment and inflation are down. So, what gives? We talk to a former Fed economist trying to get to the heart of this paradox, and travel to Michigan to check in on the place where they check the vibes of the economy.
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