Why Americans are sour on the economy

[Nycturne]

Again, the same people pushing that “the economy is terrible” are likewise pushing “the nobody wants work anymore” line. So which is it? Are we all fat and happy living off of government handouts or are we struggling to make ends meet? It can’t be both. The truth is we are overall doing okay under the circumstances, coming out of a pandemic and global inflation. There are good parts and bad parts. Labor is actually one of the bright spots.

If you ask me, it can be a bit of both. Just not for the reasons openly reported. Keep in mind these are opinions informed by someone's biases, so yes, it will be colored and contradictory once filtered through someone's economic ideology.

So, yes, we have high employment, and jobs employers are struggling to fill. But we can also have a situation where those jobs aren't paying enough. That does mean you will get employers with interviews, but watching nearly everyone walk away because it's not enough to make their current situation any better. This can certainly look like people not wanting to work from a specific mindset, despite the reality that folks are struggling while under full employment. I mean, there's a reason people are calling this Gilded Age 2: Electric Boogaloo.

That said, I agree that we are in a good position for labor to claw back some much needed wins. Low unemployment + struggling workers creates the situation where people are more willing to fight for more (feeling like there's not much to lose), and the employers aren't exactly in a position where they can just fire everyone and replace them. But you'll certainly see companies like Starbucks try.

The issue though is now there is a disconnect between how people view the economy and their personal finances. They used to be linked, now suddenly they aren’t. Suddenly polls indicate that people are overall feeling better about their personal finances and worse about “the economy” which is very atypical. My concern, based on the polling, data, and history of labor, is that we’re being manipulated, not to improve the lives of average Americans, but snuff out any gains we are making. When labor begins to strike, there is a Democratic president supporting the labor movement, and the media starts dooming about how no one wants to work and the economy is terrible no matter what the outcome of any particular report is, I get extremely suspicious. We’ve seen this too many times in our history.

Agreed that this is a concern.

 

[Chew Toy McCoy]

Suddenly polls indicate that people are overall feeling better about their personal finances and worse about “the economy”

I was originally skeptical of this statement but then realized I may have been thinking too big, like suddenly a lot of people have a healthy savings account and can afford to get another car or do exotic vacations. But more than likely it’s most people got a raise or switched jobs amounting to another $50 - $100 a month. That’s “better” but it’s not life changing, especially when you factor in the price of literally everything has gone up. Probably the biggest gains were made by minimum wage earners but that’s not like that suddenly shot them into the middle class. They’re just doing “better”.

I’m sure we all know at least one person that we know what they do for a living and roughly what they make but then when you look at their assets the math doesn’t add up. Either they are funding their lifestyle on massive debt or are getting help from family that you aren’t aware of. Whatever it is, it’s not “hard work”. I remember back when everybody was buying a house before the crash. I didn’t even entertain it. I just thought a lot of people were making a lot more money than me. We now know that’s not what happened.

 

[Chew Toy McCoy]

Vox posted an article that in summary said the problem isn’t inflation. It’s prices, period. Even if inflation is slowing people don’t get a raise every month. So unless there is deflation people are going to continue to get and feel squeezed. I also expect gas prices to remain high and even increase with the slightest hiccup in global military action. Then every business will use that as an excuse to raise their prices, including Netflix.

 

[Herdfan]

Vox posted an article that in summary said the problem isn’t inflation. It’s prices, period.

It WAS inflation. That caused prices to rise. But as noted, it takes deflation to bring them back down, but deflation is sometimes worse on the economy as a whole.

So until wages catch up to prices, people are going to continue to feel squeezed.

 

[Chew Toy McCoy]

So until wages catch up to prices, people are going to continue to feel squeezed.

But there seems to be signs that The Fed has started to achieve its ultimate goal of increasing unemployment. That's not good for wages.

 

[Herdfan]

But there seems to be signs that The Fed has started to achieve its ultimate goal of increasing unemployment. That's not good for wages.

No it isn't, but they need to get interest rates back down so people can afford to buy a house. Or a car. It's hard to find the balance.

 

[Chew Toy McCoy]

No it isn't, but they need to get interest rates back down so people can afford to buy a house. Or a car. It's hard to find the balance.

And credit card interest rates. Those small item purchases really add up in supporting the local economy. So maybe somebody who usually goes out to eat 2 to 3 times a week is now going out to eat 0 times a week, not just because those card interest rates make it not worth it, but also because they can't afford it do to the higher monthly payments they are already making on their cards. These type purchases are where tightening the belt hits first.

 

[GermanSuplex]

The ironic logical loop here is that democrats are suffering from not being able to enact all the policies that would drive costs of virtually everything down and wages up, and the first step is reforming the tax code. I’ll say it over and over. Democrats make progress with roadblocks along the way, but the big money has saturated both parties and change is slow and often set back.

Voters vote against their own interests, it’s been proven time and again.

 

[Herdfan]

Voters vote against their own interests, it’s been proven time and again.

Or voters vote for a party based on a specific issue and don't give much thought to how those same elected officials may vote on other issues.

 

[mac_in_tosh]

Voters vote against their own interests, it’s been proven time and again.

The typical MAGA supporter is a perfect example - at most middle class, supporting a leader and party that so transparently operates mainly for the benefit of its wealthy donors. Many of those supporters or their parents might be on Social Security, Medicare or some other government assistance that the party they are supporting would reduce or take away. They do it because they believe all of the scare tactics that the GOP uses.

 

[Chew Toy McCoy]

the first step is reforming the tax code.

Watched a video a while back about the BS that is billionaire philanthropy thanks to the tax code. One point that was made was if you or I donate $100 to a charitable cause we pay $80 and the government pays $20 of it. When Bezos donates $100 he pays $20 and the government pays $80.

 

[Yoused]

Here is a lovely headline:

What a third world war would mean for investors

Global conflicts have a habit of sneaking up on money-managers

www.economist.com

I mean, seriously, WTAF?