By many measures, the U.S. economy is strong right now. Unemployment is near its lowest point in decades. Inflation has slowed down. Wages have grown faster than prices since last year. Stock prices have surged.
But many Americans are not feeling it, and say the economy is in bad shape. The persistent pessimism has baffled many economists.
The situation may be changing. American confidence in the economy has picked up in recent months, surveys show. And President Biden’s campaign hopes the turnaround will boost his re-election prospects.
Still, measures of consumer confidence remain lower than normal. Why have Americans resisted the good economic news? Experts have tried to answer that question for months. Today’s newsletter will cover seven of their leading explanations.