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Americans are feeling an unusual dissonance when it comes to the state of the economy. Even though the labor market, GDP, consumer spending, and other key indicators are strong, the public’s assessment of the economy has grown increasingly pessimistic. According to a recent Washington Post-ABC poll, 55 percent of Americans now say the economy is in bad shape.
A variety of factors have contributed to the public’s wariness. Despite low unemployment and a booming stock market, wages are still stagnant for many Americans and so are their incomes. Concerns about the effects of trade wars, global instability, and political dysfunction have taken a toll on consumer confidence. In addition, the disproportionate gains from the economic recovery has left many feeling like they’re missing out while the wealthy benefit from rising stock prices and tax cuts.
This lack of cheeriness is carrying over into other areas of life. Even though consumer spending continues to pick up, people aren’t spending with the enthusiasm of a normal economic expansion. Similarly, the public’s enthusiasm for the upcoming elections has been muted despite higher approval ratings for the president.
Clearly, the economy is better off than it was when President Trump took office two years ago. But it’s difficult to reconcile this optimism with the national mood. Americans are worried about the future and economic insecurity is playing a major role in their dissatisfaction. Until those worries fully dissipate, it’s unlikely that Americans will fully embrace the economic good times.