Scott Horsley, NPR's chief economics correspondent, dives deep into the paradox of the current economic climate. Despite low inflation and a robust job market, public sentiment remains grim. The discussion covers how rising gas prices and personal debt shape perceptions. The administration's optimism around Bidenomics faces skepticism as they attempt to shift public opinion. As 2024 elections loom, the interplay between economic priorities and social issues on voter behavior becomes increasingly crucial.
Despite rising gas prices, overall consumer sentiment about the economy is improving.
High credit card debt is a concern, but increasing wages provide greater buying power.
Deep dives
Inflation cooling and job market holding up
Inflation in the US is cooling, with prices up 3.2% from last year, a big improvement from the 9% last summer. Core prices are approaching the desired levels, and the job market has remained strong with the addition of 187,000 jobs in July. This suggests the possibility of a soft landing for the economy, where inflation is controlled without triggering a recession.
Gas prices and consumer sentiment
Gasoline prices have risen sharply in the last month, which can have a psychological impact on people's perception of the economy. However, despite the increase in gas prices, the University of Michigan's consumer sentiment numbers show that people are feeling better about the economy overall.
Credit card debt and individual perceptions
Credit card debt has reached a record high, exceeding a trillion dollars in June. While this may be manageable for those who pay off their balances every month, it is a burden for those who carry a balance and face high interest rates. Despite this, wages have begun to outpace inflation, allowing for increased buying power. The perception of the economy varies between the broader picture and individual experiences, with partisan viewpoints shaping people's opinions.
Inflation is way down, the U.S. is faring better than other major economies, and people broadly say their own personal financial situation is good. So why are people so down on the economy?
This episode: voting correspondent Miles Parks, White House correspondent Tamara Keith, and chief economics correspondent Scott Horsley.
The podcast is produced by Elena Moore and Casey Morell. Our editor is Eric McDaniel. Our executive producer is Muthoni Muturi.
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