The Daily The Bad Vibes Around a Good Economy
37 snips
Nov 30, 2023 
Jeanna Smialek, a savvy reporter at The New York Times covering the Federal Reserve and the U.S. economy, dives into the puzzling mix of a thriving economy and widespread dissatisfaction. She explores why Americans feel uneasy despite impressive economic gains, especially among young adults burdened by rising costs and student debt. The discussion highlights the influence of social media, particularly TikTok, on shaping perceptions of economic sentiment. Smialek also assesses whether this negativity represents a larger trend or a temporary phase.
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The Disconnect Between Economic Data and Sentiment
- Traditional economic indicators like inflation and unemployment don't fully reflect how Americans feel.
- Despite improvements in these indicators, consumer sentiment remains low, even lower than during the pandemic's peak.
The Impact of Aggregate Inflation
- Aggregate inflation over the past four years has significantly impacted consumer prices.
- While day-to-day price increases have slowed, the cumulative 20% rise since late 2019 contributes to negative sentiment.
Rising Gas and Food Prices
- The price of a 15-gallon tank of gas has increased from about $38 in early 2020 to about $49 today.
- Food prices, particularly groceries, have also seen a substantial increase, rising by nearly 26% since late 2019.