The NPR Politics Podcast

Americans Say The Economy's Bad, But Spend Like It's Good

May 13, 2024
Scott Horsley, NPR's chief economics correspondent, dives into the intriguing disconnect between American consumer sentiment and economic realities. He discusses how inflation, interest rates, and rising debt are reshaping voter behavior as they approach the polls. The talk highlights the surprising strength of job growth against a backdrop of economic anxiety, and the influence of social issues like abortion over traditional economic concerns. Horsley also addresses the challenges facing the housing market, adding layers to the ongoing financial narrative.
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INSIGHT

Economic Disconnect

  • Americans feel a disconnect between positive economic indicators and their own experiences.
  • High inflation, especially for groceries, impacts daily life and overrides positive news like lower unemployment.
INSIGHT

Inflation's Political Impact

  • Inflation significantly impacts presidential approval ratings, as seen with Jimmy Carter in the 1970s.
  • Current inflation hasn't decreased enough for voters to feel positive about the economy, potentially hurting Biden.
INSIGHT

Voter Focus

  • Voters focus on actual prices, not the inflation rate.
  • They compare current prices to pre-pandemic levels, leading to frustration even with lower inflation.
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