Why the Economy Feels So Bad, and What It Means for the Election | WSJ State of the Stat
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- เผยแพร่เมื่อ 28 พ.ค. 2024
- The U.S. economy - by many measures - is doing great. But the majority of voters still feel the economy is bad. And as one of the biggest issues of the 2024 election, it could be hurting President Joe Biden’s re-election in his race against Donald Trump. So why is the consumer sentiment index so low despite a growing GDP and a healthy unemployment rate? And how are Americans feeling about their long-term financial security amidst wide-ranging social and political threats?
WSJ explores what the data says about why voters are feeling so bad about the economy.
Chapters:
0:00 Consumer sentiment
1:05 What’s driving economic growth?
2:16 Food, gas and housing prices
5:27 Long-term economic security
6:04 What this means for the election
State of the Stat
WSJ breaks down a key stat or data point to explain the current state of the political system - and why it matters.
#Economy #Election #WSJ
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Many investors had high hopes going into 2024. The market’s robust first-quarter rally still managed to surprise them.
Read more about how the S&P 500 is poised for its best start to a year since 2019: on.wsj.com/4abYnau
You don't seem very bright. McDonalds seems like a better choice for you.
Good for investors. Us regular folk are struggling
Average Joe doesn't give a fig about the S&P 500, employment statistics, and how many percentages of growth have happened.
They care about food, shelter, transportation ... all of which exploded under Biden.
And the astute investors know that the economy would have been in a recession if not for trillions of dollars of printing over the past 1.5yrs.
So what part of this is good ?
This video is misleading. You're using the average income, not the mean income. The average income is skewed astronomically higher due to the mega wealthy. You have to take Wall Street out of your statistics if you want them to speak to the problems on Main Street.
Income doesn't matter. Cost of living doesn't matter. What people care about if purchasing power parity (PPP) of their disposable income, and also if that percentage of disposable income goes up or down. And disposable income takes into account everything - taxes, Healthcare, food, utilities, fuel. Everything.
WSJ, you should decide how relevant you wish to become.
Employment rate and GDP does not mean that the average person is living a good economic life. It just means that people are working and wealth is being created. But how much is that job paying? And where is that wealth going?
The average American bases the “economy” on the groceries they buy regularly, which is undoubtedly higher and likely to stay high.
That’s why Americans are unhappy with the current economy.
Simple.
Inflation decreased tho
LEARN TO LIVE WITHIN YOUR MEANS.
@@RacoonFighteryeah but it still 3% so prices will continue to rise
@@minebros190 2-3% is pretty healthy, normal and also what has been going on before everybody complained
@@RacoonFighter it doesnt matter. My pays the same as its been and prices are slowly rising. My life is still slowly getting more difficult
Simple family budget pains: 25% increase in food prices in the past 4 years, 25% increase in rent in the past 4 years, mortgage rates increased from 3 to 8%
Has the average wage gone up 25% in 4 years?
That would be about 6% a year.
Lots of people with bachelor or even masters degrees cannot find a bwtter job than retail, warehouse, call center, custommer service etc. The market has an over supply of highly educated people like history, communications and biology.
Heard some hospital lab jobs even pay $20 an hour. You cannot survive on that in most cities unless you live in your car.
Wrong. fact is, average food and other products have gone up: 6%, and wages have gone up 8%, in the past 3 years. Mortgage rates went up to control inflation, and are now coming down, back to 5%, where they should be.
@@thijsjong There are over 11 million open jobs, right now, there's NO saturation in the market for highly education workers, you need to look at the facts, not radical-right news propaganda.
I like your version of reality
@@MrArtist7777😂
Its morbidly funny to watch these little graphs tell me the economy is great while everyone I know is drowning under food price increases, rent or the inability to buy a house.
Anecdotal evidence is the dumbest argument ever
I actually know very few people whose wages are not matching their cost of living increases. Maybe it’s a city by city problem?
People dont understand how to live within their means.
@@dementedchicken1 It's an anecdotal evidence problem
Inflation and employment rates are both lower than 4%. What is the problem?
on paper the economy is doing excellent.. but talk to the average American & its a different story.
Every body's experience is obviously going to be different, but to deny or explain away the numbers and data because some people 'said so' probably isn't the hill you probably want to die on.
@@johnhandcock8193instead of blaming the masses you better call out number fudging done by your rulers
It's doing great if you're rich
@@johnhandcock8193 It's not "people said so". GDP is an aggregate measure. What does a blue collar or hospitality worker care that tech had a great quarter? What does one region care that another region is growing. It's possible that growth is limited to a section of society, while the rest took a hit during COVID and never recovered. Telling them "look at the numbers" is pointless, heck it's lying through statistics.
That's because the average person views the news and social media posts that constantly bag on the economy. Negative news is more powerful than positive, so that's what news media does. The economy is BOOMING, and Biden's done a great job, he'll get elected again in November over a seditious criminal.
It’s because housing costs and food costs are very high, which is the main two things everyone cares about the most.
They’re essential for living. They should matter most. An economy where only big corporations and the wealthy are thriving is not “strong” or “healthy” like they would have us believe.
I feel like it has become gamefied due to tech algorithms in so many sectors.
For real. Biden supporters trying to lecture normal everyday families about how well the stock market is doing doesn't move the needle whatsoever. In fact its just likely to make them go more in the opposite direction when voting.
That’s what inflation does. Economy isn’t strong when there’s no price stability
Inflation is fine when most people are seeing their wages go up faster than their inflation.
@@spacetoast7783 But that ONLY happens normally if the worker increases skills and increase productivity. Inflation is immoral even as you prefer because it means the richest get all the new money and buy all the assets before the prices go up, and the workers all suffer higher prices for a year before they get wages to increase based on the counterfeited dollar's fake value.
When economy is strong inflation happens
@@daifunka7062 You are correct. Inflation falls during recessions because people aren't spending money, and it rises when people have money to burn. The real question is always whether the economy and wages are beating inflation in the long run.
@@spacetoast7783 Exactly!
It's quite simple. The measuring tool for a "strong economy" is detached from the reality of people. The strength of companies isn't translating to more money for consumers. Companies are hoarding cash instead of raising wages.
Exactly! Just because someone has a job, doesn't mean that job's pay is keeping up with inflation. Or they didn't take a lower paying job just so they have a job. The unemployment rate tells us about how corporations are doing, but not how the worker is doing.
Just because a company has a higher stock price doesn't mean they have cash to spend. The shareholders are the ones benefitting from that higher value, and they're not employers. That's the key problem of asset inflation.
Why would companies hoard cash during an inflationary period? Your argument falls apart in the last sentence
@@toxiccan175 They using that cash to go ahead with share buyback plans, that way stock price goes up and the management team can cash in on their options whilst investors are happy because they get a better return. There is very little reinvestment in the major corporates, this is what they put their profits towards.
@@toxiccan175Hoarding as in using it for their purpose; reinvestment, stocks and C suite bonuses rather than for the bottom line
Wages are too low, having a full time job and not being able to make rent and buy groceries is offensive. That's why people don't care about what economists think.
Isn't that a running theme since the 90s?
Then you must favor a cost-of-living increase in the minimum wage, right?
Economists get their data by asking people how they're doing and what wages they're earning 🤷
If wages are rising and outpacing inflation, then they must feel great because they are being paid more. But this video article demonstrates and explains that people use historic numbers to judge the current costs. So as the man said, the cost of a can of coke was 25 cents but is now much higher. It doesn't matter that his salary has quintupled, he rates his comfort level on history.
It would be nice to be able to do something about it, but as long as people vote Republican, nothing will change. Vote blue!!
💙💙
No matter how much you made, it will never be enough if people are stealing from you through inflation and taxation.
Our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
‘Amber Dawn Brummit’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
As a base citizen living in the US see this:
Groceries - HIGH
Gas - HIGH
Housing - HIGH
3 common important things that make a person. Ofc we complain 😂
Cars - HIGH
Housing cost will go down by the end of the year but everyone is going to have to be patient if you want to get a mortgage for a home wait till the fed lowers interest rates then do it you will save your self a bunch of money
@@plasmaboy2265 Trouble is that it will make no difference because the interest will be so high as to drive the payments up to where they were when houses were priced high and interest low.
the 2020 dollar is worth 85 cents now. No one has gotten enough pay increase to make their paychecks the same buying power as they had in 2020.
On average yes. But for the Most people Not
@@lucaskohl1037 do you know what an average is?
@@spartacoolcodycool yeah, do you?
No. I had a Series 2020 dollar bill in my wallet and the cashier at the convenience store agreed that it is still worth one dollar.
@@lucaskohl1037for the median it also has increased above the inflation rate, so your assessment is also misleading
The economy (stock market and businesses) are doing well now.
But home prices, rents and car prices have shot up well past inflation.
And it turns out rent, home and car prices are what the average person cares about most.
Yeah, but wealthy people care about the stock market because it takes money to make money. Glad everyone at the top is doing well! /s
@@jake1110 The stock market *is* important, just not as important as housing to the average person. If you have a 401k, the stock market doing poorly will effect your retirement.
@@WoodEe-zq6qv This story talked about wage growth out pacing inflation. But that data completely ignores what classes experienced that wage growth. If you include every worker including the ultra wealthy, I can see how they get a number like this that wages are growing faster than inflation. Our utility company PG&E's CEO made 2 million in 2022, and 250 million last year, while raising prices 38% just this year alone by the time it's over. The rich can be huge outliars that skew averages like the average wage growth. IF the rich see huge gains, but the middle and lower class actually did not experience wage growth higher than inflation, I think that would explain why people feel the way they do, and I thick this is the case. Income inequality is getting worse at an exponential rate.
@@heyaisdabomb Measuring outliars is a good point, but income inequality isn't. There is no negative economic externality to income inequality.
@@heyaisdabomb This doesen't really bare out in the data. Inequality has been coming down recently, income growth is highest among low wage earners and real income is falling for the upper quintile.
Welcome to the Silent Depression.
The voters don't agree because the economy is not strong. The economists can't seem to understand that their models are not correct; there are too many things missing in them, and the weight given to what is present is unbalanced. The voters do not experience the economy the way the experts measure. Decades ago, Harry Truman famously said "line up a group of economists and they'll still point in every direction". Some things have not changed, or at least they haven't straightened themselves out.
It is true even for us though.
I own a home, I am happy when home prices go up.
People who don’t own a home want prices to go down.
So which one is better ? Going up or down ?
If I own a rental property I want rents to go up, but people renting want rents to go down.
Which is good ?
I own a home and locked down interest rate @ low rates, I don’t care about high interest rates, but people who wants to buy home wants lower rates.
It depends on who you ask, people will point in different directions.
The economy IS strong -- in macroeconomic terms. A significant problem is that the economic strength is not evenly distributed with the wealthy benefitting enormously and those lower down the ladder not so much. Wealth inequality, the rich not paying their fair share, etc is the real issue. As JFK stated, a rising economy lifts all boats. The problem now being that the water is rising in singular pools for the wealthy, and the rest of us only get some of the spillage. And who is stopping the reforms to allow for the middle class and the poor to benefit more? The Republicans, the GOP. Vote accordingly.
@@gund89123 depends on the majority. majority of people are renters so obviously rent going down is better
@@KevinAdams26 I am not a moron, I will be voting Republican, but then, I also understand economics. The economy isn't strong and only gov't paid economists are spewing such lies. I find it sad that most Americans are ignorant of economics and so naive that they believe everything politicians spew. VOTE REPUBLICAN FOR SANITY
@@KevinAdams26 Bruh, stop telling people to voted Democrat when it's Democrat policies that lead to this problem. I'm NOT voting for Biden.
I'm just saying, 2-3 years ago when I go out and eat it cost $7-$13 now it cost me $12-$22 for the same things.
If you can't afford it, stay home. There are lots of good meals you can prepare that don't cost that much : Spaghetti, grilled cheese sandwiches, hot dogs, hamburgers, salads, etc.
@@thewolfdoctor761 Good advice in general. But the POINT of that comment was that cost of living is outpacing wages.
@@jrho8033 Actually the point of the comment was that eating out is more expensive. Wages wasn't mentioned.
@@thewolfdoctor761damn bro, should I not buy houses and cars too with 8% interest rate 😂
@@Habibi_exe He didn't mention cars or houses.
Because a lot of my friends are getting laid off, and my company has been on a hiring freeze for over a year. "Strong" economies don't have tons of corporate layoffs and hiring freezes. Yes, there are tons of $15 an hour burrito making and rideshare jobs, but if you want to make any kind of money, you're not getting hired right now.
Yup. They don’t wanna pay. But at the same time they are barely surviving
I think prices are too high for everyone. But if businesses want to survive people need to make money
Businesses have also costs too gotta think about that
@@orlandpaul5810 +1 increases in asset prices don't cause your local burrito shop to make any more profit that it can pass onto workers.
so 3.9% unemployment is fake news ?
Big difference between the stock market and the grocery market
-Do I have the wrong indicators for microeconomy?
-no, it's the voters who are wrong
It’s *macro, and yes voters are wrong, did you watch the video ?
Voters dont care about the macro.
They care about the micro. It is their own wage. Their own rent. Their own bills. Their own job prospects. (discouraged jobseekers)
These macro indicators are not a good aggregate for all the micro economy problems.
The median is a much better presentaion. And you have to look at cohorts. Top quarter earners may be doing great while the bottom quarter earners could be slammed.
@@thijsjong Can you please google what’s microeconomics, I don’t think you understand the term correctly
@@God_of_Virginshe is right
@@God_of_Virginsi don't think you do either
wish theyd stop including ghost jobs in their metrics
I'll tell you a secret... people are tired of income inequality. They know that they are not getting properly compensated for the work they do.
So the real question is: who benefits from a "strong economy"? Not the average person.
The government benefits, it controls the narrative and spins the stories. There is no strong economy. The world is dedollarizing because the threat of devaluation is massive. The US dollar has lost 17% of it's value since 2021. We have to shed at least 45 trillion dollars before our economy can work properly. The US "leadership" found that forcing cross border trade in approved currency, have OPEC sell oil only in dollars, and sanction any nation that doesn't follow our orders to the letter led to a "strong economy" and got votes. Well, like legit economists have been saying for decades, printing and borrowing money is extremely damaging to the economy in the guise of INFLATION.
People who have been saving and investing for years like me ?
lol
Although constantly harping on the "strong economy" talking points, it didn't stop my liberal Trump-hating friend from feeling she had to move from CA to Texas to survive economically.
You know she grew up as a spoiled rich kid if she's crying about the price of food.
@@spacetoast7783 you still here lying? Regardless, of course it's cheaper to live in a third world country.
@@whoees3953 Who are you talking to? I never said anything about third would countries.
The one thing these videos always gets wrong is saying that people feel like their income has not kept up with inflation that's wrong they want the prices to come down more than they want their income to go up
@@dstarrii9784most people's income are not going up. The average is increasing based on outliers
because the economy is not strong, and consumers aren't fooled by faulty statistics
Home prices went up 3x in my area. 200k to 600k.
And your salary went up 3x, right???
@@jrho8033 20%.
@@jrho8033 Uh, no
Salary went up x3 times right 😂 yea a guy doing the same job for 50k went up to 150k
Missed the key point: The income gap has widened significantly during the Biden Administration. Most people are worse off regardless of what GDP says as the driver for the last 4 years has been monetary policy rather than fiscal policy. This results in a disproportionate amount of wealth being generated by asset price appreciation rather than the real economy (other than the tech sector). Whilst those that own a multi-million stock and/or real estate portfolios have gotten tremendously richer, the middle and working classes have gotten increasingly squeezed...there are a lot more of the latter.
I agree completely! Notice how the ones that say the economy is doing great are either super wealthy. Or are stuck behind a screen looking at numbers and get paid to say the economy is doing great..
Trump will make the income gap greater if he’s reelected
@@paulh1862Undoubtedly.
My thoughts exactly. All the wealth increase is in corporations and stock markets. Most people feel their wealth in their spending power, which has shrunk dramatically.
Bla bla bla...move to canada if he's reelected 😂@@paulh1862
Its almost like you dont see the thousands living in the street.
Because GDP is not a good indicator or the median income growth for the middle class. The growth in the economy disproportionately goes to the wealthy.
Good for the elite. The quality of life for the average citizen has gone down the toilet. I understand now why people indulge in criminal acts. This government encourages it.
“The economy is doing great” only has and will mean “the rich are getting richer”
If Wall Street is strong they say economy is doing good, but those companies can layoff thousands of workers and see their stock prices go up while those people just had their lives turned upside down but we still care more about how well WS is doing all the time.
Insurance has gone up. Utility bills has gone up. Gas and groceries has gone up and taxes have gone up.
My question to Economist is why GDP model are relevant to Economist when it only benefits 10% percent of the population?.
Because that's the only 10% that matters. The rest is just a human resource.
@JonasWilms meaning Economic are designed to serve those in power not the working class?. Capitalist are been exposed every day 😂😂😂
Many companies benefit from inflation but consumers get hit.
well said
Inflation make rich to richer and poor to poorer
What companies benefit from inflation?
It’s interesting. I’m in Canada. The grocery stores are under investigation for processing gouging due to public pressure. In the last few weeks, the prices on groceries has gone down DRAMATICALLY. One example- ground beef has gone from $15/kg to $9/kg.
You'll never see such an investigation happening in the US, the country that pretends that price gouging and greedflation do not exist.
Why don't voters agree? Have you ever been to the store lately or paid any bills? The price increases from the past 4/5 years has been absolutely insane!
I hear and read so much chatter about how this economy is, "Smokingly hot, never been one like it before, we're the envy of the world," etc. This chatter is just the 1% talking amongst themselves.
Bingo. Corporate media and those who consume it are doing just fine. They're the people riding around manhattan in a black car moving between high end restaurants and cocktail bars. They don't get it. They won't get it.
Project Mockingbird messaging
Every time I hear so much chatter about how people can't afford food, I know I'm listening to a spoiled brat leftist kid.
@@spacetoast7783 Every time I hear so much chatter about how people can't afford food, I'm watching Fox News.
Definitely!
The economy is strong, most people just can’t afford to live as well as they did their entire lives before Biden became President. People are broke and financially hopeless, but everything is great. Thanks!
The media puts a title like this, why don't voters trust them?
The dems favouring their big money overlords whilst crushing the common people.
They are pawns for the top dogs. They tell us what to think, we think it, we vote it into power, then we suffer like sheep heading to the slaughter house.
Inflation is part of the economy. People are struggling. The pay doesnt match the inflated cost of everything that has to be purchased.
They showed that wages adjusted for inflation have grown though
@@dementedchicken1 They haven't kept up with inflation though. When home prices spike and interest rates rise, it makes it even more difficult for most to buy.
@@dementedchicken1 I don't agree. It's people sleeping in cars and storages units. Some people have to pick up two to three jobs and barely getting by....
@@jake1110 By definition, "grown adjusted for inflation" means that they have kept up with inflation (and exceeded it)
@@jake1110 Pretty sure interest rates getting higher is meant to reduce inflation
There is a disconnect between people and economists, Businesses, Corporations.
Economists want to use GDP, unemployment rate, labor participation rate, stock market as indicators.
But people care about median wages, inflation, purchasing power, retirement savings, healthcare costs.
"The repetitive nature of financial market dynamics is evident. Artur Grandi's book outlines a practical approach to stabilizing investments and identifies opportunities for investment, including in the cryptocurrency space."
These expert people are way out of touch when basic necessities or as we call the “basket of goods” cost a lot more compared to purchasing power.
Inflation is still happening. I went to Aldi yesterday and saw they raised the cheapest bottle of wine price 15%. And 6 months before that it went up another 15%. Now apply that to all other food & drinks and fast food/restaurants & housing.
Most people are not receiving 15-30% raises in a year.
The bottom did the top took those in pay cuts ....working 20$ an hr is nothing to aspire to, managing your company for 55k is pathetic
Are you seriously using wine as your example?
Wine isn’t a necessity
Wine isn’t a necessity, second if you want i can send you some wine from my country cheapest is 5,50€/5L box😂
Yes, because it is the most recent example I encountered, literally yesterday. I'm not implying wine is a necessity, but it is definitely an example that inflation is not over when it jumps 30% in a year.@@warpfire052
It isn't strong. It doesn't take an economist to figure that out.
You're just proving their point
Dems believe in facts over feelings... Sorry if you don't like the facts. You sbould go back to the conservative hug box
Do you also have any arguments or just blatantly talking BS?
Because people living outside their means. Means the economy is not working for them. No.
@@markmierzejewski9534 People living paycheck to paycheck, businesses closing and big companies laying off a lot of employees is NOT a working economy.
Rent/mortgage rates, groceries, gas, and wages are the real economy. And all of those are a disaster right now.
Feels like everything went up to twice the price, the portions also got smaller/ are lower quality, we now have an immigration crisis driving up the demand for more products making things more expensive, we’re sending all our money to Ukraine and Israel, and it feels like people are trying to add more expenses like the New York driving tolls or things like everyone in your family having to have a Netflix account
Thats because GDP is a horrible quality of life metric lol.
Guys, strong economies dont require a trillion dollars every three months to keep going. Oh, and I N F L A T I O N.
you are confusing productivity of the country with stupidity of the politians.
Strong economies tend to have bigger numbers in the budget. I'm not sure what point you think you're making.
@@spacetoast7783 16% of the budget goes to servicing debt almost $500bl a year, Not even paying it off just paying interest and adding trillions a year
@@ldIezz Ok?
@@ldIezz So?
A dozen eggs are now costing over $4. How long will it take for the Labor Department to wake up and add it to the inflation rate. When was the last time that the price of a basket of goods and services consumed by households been changed to accurately measure what Americans are buying and what the true measure of inflation is?
bruh most patronizing thing ever
The next time you see a poor person, just tell them that they're just a bunch of anecdotes because the stats tell us the economy is doing great.
That's odd, it's as if people said, I wonder how much longer this awful cost of living, inflation, zero good job opportunity, etc. and saw that the government has very little interest in making any of that better and lost faith. So weird. If only the people with their own money saw things as clearly as "expert economists" that have plenty of it
Ummmm because our money had been devalued by the rising prices we see everywhere.
It is utter nonsense, what jobs are they talking about, the minimum pay jobs ?
The people are getting minimum pay jobs because they can’t afford to survive these high prices just by depending on one income. I’m SWE a lot of people have been laid off, and now all of the jobs require a Bachelor’s. This is Nuts, the inflation is thru the roof,household on two income streams are finding it hard to survive.
Is the WSJ gaslighting us 😂
Good to hear the stock market is high and part time and low paying jobs are on the rise… but look at food, groceries, rent and housing, etc etc
Exactly
Nobody is happy in this economy. It's a win for corporations and a big loss for workers. We now all have to work more to afford the rising prices. The rich are getting wealthier.
Lying about the status of the economy doesn’t make people feel any differently. People are in mountains of credit card debt, student loans and auto debt and will likely never afford a house!
That real personal income is the average... What does it look like if we are talking about the medium income? That's a LOT more important because it isn't being pulled by outliers.
There are two economies in the USA right now. The wealth gap is huge so you got half the country hurting hard from inflation and is in a hard recession while the other half is booming.
You did not take into consideration how savings has diminished and eroded. This is the main reason.
"Guys, please believe us! We totally aren't lying to you!"
They're really out here trying to tell us it isn't bad but what they really mean is debt slavery is on its way and there's nothing the elite want or care to do for us. Soon big grocery stores will offer their own credit card and you'll have to take out a loan just to buy food.
Lol! What a mystery! But I'm going to guess inflation, price of housing, inflation, inflation, and inflation. A $60,000 income 4 years ago now spends like a $48,600. Also 4 years ago, the median cost of a home was under $260,000, and is now over $400,000.
It isn't strong.
The economy is growing because they are spending one trillion every 100 days
Who is this economy strong for? Cause when I'm paying 60 percent more for food and gas, it only feels strong causes its choking me out.
Contributing factors;
A) political instability and polarization. B) High levels of Asset Inflation. C) High levels of wealth inequality. D) High Interest Rates and Decreased Social Security Spending.
These are the factors I've identified that contribute to the vibecession. It doesn't matter if the economy is good if the benifactors of the economy are wealthy asset holders.
While high housing prices suck for people who don’t have home… it’s a boom for people like me who have owned one for years. With my 2.5% 30yr interest rate and my raises that have kept above pace with inflation the past few years, housing costs have shrunk for me dramatically, enabling me to have way more money to spend, save, and invest. 66% of americans own their homes. So while in the headlines it might appear everyone’s complaining about not being able to afford one… there’s twice as many people in a situation like mine. 🎉
yea your rich on paper but what good is having all that equity and you can't sell cause your gonna triple your housing costs getting out of your current loan
@@takeflightfinance644 lucky me then, I don’t need to sell. I get to keep that extra cash flow for a good long time.
If you get transferred, you won't be able to replace that house because interest rates are much higher. Home ownership has dropped to 55% per the banking industry and the realtor industry. You've forgotten the wave of repossessions that have been happening in the US coupled with the amount of housing purchased by foreign and domestic businesses.
@@LunaLapin-ho5tk wave of repossessions? They’re only going back up to where they were pre-pandemic…. This isn’t 2008 again!
Does anyone getting the feeling we're being gaslighted?
My BS is going off from watching this
The economy is not the stock market. Majority of people are worse off than 2 years ago. It is simple
Inflation has been bad, and wages for the working class have failed to keep up. Most people are still struggling. Working two or three jobs at once is also a way of struggling. If you are a rich person, you never see this or feel this.
Corporations and LLC landlords are drastically overcharging for goods and services, that is why people feel strained. Costs have risen Much higher than wages and salaries, especially since Covid. The economy is strong; it’s not the problem. GREED is the problem. 🇺🇸💙
Botton line, my life isn't better than it was in 2019! We(my wife and I) make more money than ever but we can't afford the same lifestyle! Our standard of living is slipping.
Because the economy is only good for top class people. It's growing while they keep accumulating more assets. While our average people keeps falling behind and unable to buy a home, drowning in daily expenses. People only feel happy about the "economy" if they can purchase assets, not only living paycheck to paycheck.
"If you don't the economy is working, it's your fault" - WSJ & Democrats
Inflation isn’t 3% sorry like the fake cpi. It doubled
economy doesnt mean the peoples it just means companies and the peoples are doing terrible
This is what inflation does. Those that had money to invest get rewarded. Most lose more and more money. BTW, the unemployment rate doesn't mean anything when the economy has lost millions of full time jobs and hours worked is down.
Housing is the biggest issue, we need young couples buying and not renting.
Biden needs to ensure that Americans have a fun summer, and that prices go down by September/ October. Which will ensure a landslide victory n November
He must also continue his campaign against corporate greed and inflation to achieve this.
And legalize that 🌲🌲
Only Biden can ensure my summer is fun lol
This a joke? Or you ride the short bus?
Biden needs to make sure he retires.
The reason is because how well the Economy is doing doesn’t matter to people. People care more about what they end up paying at the register . Not to mention the negative affects of the pandemic on the economy already done it’s damage , so while the economy is doing much better , things still won’t go back to being how much they costed pre pandemic.
If you have to explain to us that the economy is strong, then it isn't strong.
The answer is because the stats of the economy don’t make their way to the average American. Wages have not increased for decades to where they need to be when adjusted for inflation over decades.
On top of this as well but most jobs that are being created are not high paying jobs.
Also as touched on but the cost of many important things like groceries, electricity, and many other inflexible expenses have gone up overall and stay up.
To add a cherry on top most people have not the faintest clue on how macro or micro economics works. So the blame gets put on Biden even though he has very little control over the economy. Then of course we have an irresponsible congress constantly making a clown show.
Deflation would be its own bad can of worms for other reasons but this economy is fake strong. It’s heavily propped up right now by government spending and much of that growth is going into the hands of the few worsening the divide between income brackets
Probably the most comprehensive, down to earth explanation of the situation right now that I've seen. 👏🏽
@@alexts94 thanks for the kind words. I don’t know if you celebrate Easter but if you do I wish you a happy one and I hope that things can get better for everyone who reads this
Low levels of deflation are good for working people, bad for Wall Street. Wall Street is the economy now, hence you can't point to the "good economy" and expect people to care at all.
"The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command."
All everyone, inside and outside of the US, hears is "I can't afford to live", "I can't afford rent", "It's too expensive to live". The GDP isn't the end all be all indicator of how well off people are.
I'm full of hearing that the economy is "strong." Strong for who? Maybe if economists asked people how they feel about rampant inflation, increasing housing costs, and daycare, restaurants, college, healthcare costs, etc, they would stop thinking that everyone is benefitting from this supposedly good economy
I don't understand why all these news people need articles and studies it's very clear why people don't feel the economy is great you can ask just about any normal person.
They literally adressed that in this video. Normal people are detached from reality.
Grocery stores and retailers are price gouging consumers. So the sentiment is accurate.
I'm getting squeezed at every turn, it's becoming difficult just to survive with the bare minimums
The worst an economist can do is define a good economy solely based in GDP.
The elites are the only happy ones
Corporate greed also has a HUGE role to play in this. The United States rarely see prices decrease - and if it does, its temporary.
Actually prices are pretty fluid here in the US. Prices go up, prices go down. Who benefits if prices go up? Who benefits is wages go up even if it's not enough to cover inflation? I can tell you, it's the gov't. They get more tax dollars when inflation is high all the way down the line to the actual components of the products we buy.
Regular people don’t feel GDP, they feel the inflation
I'm not Biden hater and Trump supporter, I'm not even USA citizen but even I know Biden is failing and people are tired of him and will vote for Trump just to get something new
You're gaslighting your viewers WSJ,
You should be ashamed.
where?
The economy is good for people that have a mortgage or own a home. People without that equity or that are trying to buy their first home are left behind.
Yup!! 100%
Not really. Prices on everything is going up and that means my mortgage is getting harder and harder to pay.
"for all of 22..." You mean Bidens entire term right?
GDP growth only matters to people who benefit from GDP growth. Stock market growth only matters to those who benefit from it. The vast majority of Americans do not benefit from rising GDP nor from rising stocks, only from rising wages, and wages have been flat for about 50 years. If wages had kept up with GDP growth, minimum wage would be about $25/hr, and more people would likely agree that the economy is doing well.
Gaslighting your viewers wow going great wsj
This was very interesting! Thank you for the video!
The economy can be as great as you want. If the average person struggles with monthly expenses while some billionaires get richer, they won't feel like things are going great.