In an increasingly polarised and performative society, vibes are now often trumping objective reality
I don’t need to believe anyone. Im living in it.
It’s important to note that Americans are all over the place when it comes to the economy. To start, take this link to a bar chart from a Quinnipiac Poll in August: https://imgur.com/a/lHtPjJW
This graph shows that these types of polls are inherently inaccurate becuase Americans are answering according to their polical affiliation, not their actual economic situation. This graph also shows that the majority of democrats and republicans believe their current economic situation to be good.
An another reason why some Americans might be disgruntled is that wage growth across the US has been very uneven. This chart from the US Bureau of Labor Statistics shows that wage growth has not been consistent across the US: (https://www.bls.gov/charts/county-employment-and-wages/percent-change-aww-by-state.htm). Those living in an area of low wage-growth are probably less likley to believe the economy is doing well.
NYC, for example, has had consistently rising rents and only seen an average increase of 2.1% for wages. In contrast, Charlotte, North Carolina, has seen rents fall as much as 4.6% in some areas while having an average wage growth of 6.7%. Declines in rent in Charlotte are largely attributed to an increase in new housing. Link: https://charlotteledger.substack.com/p/charlotte-apartment-rents-fall-as?utm_campaign=post&utm_medium=web
So, it’s complicated. I think the democrats best move going forward is to hammer the republicans on things like abortion, and let the economy speak for itself.
Non-paywall link: https://archive.is/BFl9w
The chart of basic facts about the state of the US economy that most voters get wrong is astonishing.
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You are fucking deluded.
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Author is heavily opinionated and Kinda uses stats as a weapon. Ignores that a lot of those jobs are part-time, non benefitted positions or that corporations are buying houses making it hard for the younger generations to buy one. Not to mention wage gaps and vanishing pensions, etc.
But certainly, tell me more about how I should be positive about end game capitalism.
These are measurable, objective things that people are getting wrong:
By huge margins, they believe inflation is still rising (it’s falling), that it has outstripped wage growth (wages have outpaced prices), and that they have become less wealthy (they’ve become much wealthier).
These are core facts about the US economy. I don’t think it’s okay to say ‘they answered incorrectly because they’re worried about other things that weren’t being asked about’.
A functioning democracy is predicted on having a rational electorate. But the repeated evidence of the last several years is that huge numbers of American voters seem unable to grasp the objective facts and reality of the country and world that they live in. For a long time we’ve all focused on the right-wing extremist angle to this - climate change denial, anti-vaxxers, 6 January denial, and so on. But the next US election is going to be centred around the economy, yet it seems like a lot of voters (drawn from both left and right?) are being influenced by a subjective worldview of the US economy that differs from objective measurable reality. They’re going up vibe themselves into a Trump presidency.
The article is paywalled, but is there are talk about the testing methodology used? Because if I really wanted to, I could find the poorest american cities, survey people there, and then use statistics about the country as a whole to make them look “unable to grasp objective facts”. It’s foolish to blindly trust statistics without understanding how they were gathered.
I get looking at things like that goes against the blinding arrogance of a neoliberal philosophy, but does it really stand up to reason that people wouldn’t know if they’ve become wealthier, if you’re even bothering to ensure they’re defining wealth in the same way your statistics are?
The article is paywalled
One explanation I heard is that the despondency comes from young people struggling with runaway rents. But wages have risen faster for them than the old, outpacing rents.
Huh?
I looked at the apartment I lived in 12 years ago and the rent has doubled. Where have wages doubled in that time? Our second apartment has not quite doubled, but increased around 70%. Rent prices all over the country are madness.
Oh, he’s only going back to 2020…
The graph in his “much wealthier” link also doesn’t scream “much wealthier” to me–it looks more like “finally recovering from 2008”. But if we’re pretending 2020 was the start, sure, it’s amazing.
So maybe the takeaway from this is “the economy isn’t bad if you use a tight enough time window.”
Ah yes, the vibes are the problem. Those silly, goofy vibes. They’re to blame for:
- My rent has increased 13% from lease to lease
- My grocery bill has gone up 33% in the past year
- I can’t afford to buy a new or used car
- I suddenly became unable to buy a house in the past six months
- My credit card interest rates are almost 20%, which is considered to be on the low side
- My yearly raises at work (5.5%) have not kept up
Others have pointed out problems with the article, and I want to add that economists are inherently biased because they earn a median salary that is twice the national median, meaning they do not personally experience price increases as difficult as the typical American. And finally, the description of society as “performative” makes me think they may have their head up their ass.
It’s not a mystery, it’s a problem with averaging. The bell curve is shifting over because it is being skewed by whoever is raking it in due to artificially increased pricing. Many people keep a budget and aren’t relying on their feelings about the economy when they tell you that groceries cost them more than double their pre-covid budget thresholds for less and lower quality food, unsustainably high rents have increased from 10 to 30 percent for many (at least in cities), and electricity costs have continued to rise. If your wages didn’t increase enough to cover all those increases than you are personally worse off. Who cares how it averages out in the larger economy.
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That would require deflation.
deleted by creator
Cool your jets, buddy. This is a place for cool-headed discussion not for hurling insults around.
The inflation the Western world has experienced in the last two years was caused by an external commodity price shock, because of an actual war going on Europe and supply restrictions from Russia, a major exporter of energy commodities; not primarily domestically originating. Energy is more expensive than it used to be, for all of us.
There are two ways to react to that.
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The first way is for businesses to put up prices to maintain their profits, and for workers to demand more pay to preserve their buying power. But the higher wages leads businesses to want to put up prices even further, and the higher prices leads workers to demand even higher pay. And so on and so forth - a wage-price spiral. Britain in the 1970s.
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The second way is for businesses and workers alike to accept we’re all poorer now as a result of a core thing we all rely on being more expensive than it used to be - for reasons completely outside of the control of domestic politicians in any of our countries - and we can either all be poorer at the current price level or we can have a load of price and wage inflation that leaves us all still poorer but now at a higher price level.
The reality is that what we’ve had in response to the energy price shock was some of the former, but central banks are using monetary policy to try to push us into the latter rather than having endless wage and price inflation in the pursuit of the unattainable.
Your pay is never going to increase to compensate for what was primarily an exogenous energy price shock - and the more that workers and businesses try to make the impossible happen, the worse that inflation would get.
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Isn’t the wage-price spiral now considered a myth?
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A large part of inflation was central banks doing a “money printer go brrr” in response to covid. There were many predictions that it would cause significant inflation at the time; it just took a minute to see the effects.
businesses and workers alike to accept we’re all poorer now
And the extraordinary leaps of real wealth gains of the 0.1% in that timeframe? We just ignore that?
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Economists literally changed what they use to measure inflation.
Can you explain how and why this change leads to less accurate measurement of inflation?
