Experts are saying we should be all smiles about the economy, but here we are, feeling more meh than yay. It's got the economists scratching their heads. What's the deal with the economy and people's moods in America these days?
Here are Five Fast Facts on the Misery Index paradox:
- ⏲️ What Is It - The Misery Index was a thing made up in the 1970s by Jimmy Carter that helped him beat incumbent President Gerald Ford. It's basically just a comparison of the unemployment rate and the inflation rate to figure out how miserable everyone is. Ironically, it got worse during his term, and was part of the reason Reagan beat Carter a few years later.
- 😖 Recent Misery - The Misery Index hit its highest level in 40 years in April 2020 thanks to COVID. Since 2022, inflation and unemployment have been steadily dropping - 3.1% and 6.8%, respectively.
- 🤮 Bad Attitudes - Despite the numbers, consumer sentiment remains stubbornly low, even lower than in April 2020. So even if the numbers are better, people aren't feeling it.
- ❓❗ Wires Crossed - This part's got economists doing the classic head-scratch move. See, usually when the numbers perk up like this, folks start strutting around like they've won a prize, boosting the mood and the economy with it. It's sorta like how you might feel broke as a joke but still end up splurging on holiday gifts like there's no tomorrow.
- 🤔 Just Guessing - There may be a couple parts to the answer here. Inflation-driven wage increases might be prompting that spending while people keep their bad attitudes about the costs of everything. Also, the political polarization going on in the country seems to be having a drag effect on everyone and everything. It could also be that the pandemic "scarred" the nation's psyche a bit, and people just aren't ready to move on without reservations quite yet.
🔥Bottom line: Whatever the reasons, it's a bit of an oddity in terms of how people are feeling compared to the numbers. Which is the right measure? Hard to say, but it probably depends on who you ask.
How are you feeling about things right now?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
