The Atlantic recently published an article titled “Why Americans Hate a Good Economy,” addressing the paradox of President Biden’s poor polling despite positive economic indicators. The piece, written by staff writer Jerusalem Demsas, was inspired by a Financial Times poll showing a majority of voters feeling financially worse off under Biden’s presidency, despite favorable statistics such as a 3.9% unemployment rate and stable consumer prices.
Demsas proposed seven explanations for this disconnect between public perception and economic reality. The first is the need for adjustment post-COVID and inflation spikes, suggesting that people’s perceptions are influenced by the economic challenges of the past two years, not just recent improvements.
The second explanation acknowledges the severity of inflation, noting that even those with good-paying jobs might feel the economy is underperforming due to inflationary pressures. The third point highlights heightened expectations due to the federal government’s substantial support during the pandemic, including stimulus payments and tax breaks, which have since ceased.
Demsas also discusses the issue of high rent costs, contrasting it with a study showing decreasing inequality and rising wages for the lowest-income earners. She suggests that high-income individuals may be more sensitive to the challenges of a tight labor market.
The sixth explanation critiques the media’s tendency to focus on negative news, aligning with Biden’s criticism of the media’s negativity bias. Demsas notes that survey responses about the economy have remained relatively stable since 2020, despite the media’s focus.
The final point raised is the ineffective communication by Democrats, questioning why there’s such eagerness to rationalize the disparity between economic data and public sentiment. Demsas argues that this debate is crucial for shaping future responses to recessions, questioning whether policy makers will shy away from robust fiscal stimulus due to fear of inflation or if they will make pandemic-era social supports permanent.
In conclusion, the article delves into the broader implications of this disconnect, suggesting it could influence how future politicians tackle economic challenges and recessions.