I just looked through the latest edition of The Atlantic and discovered an article discussing why popular perceptions about the state of the economy don’t match the statistics. The bottom line in the article was that the statistics don’t match “the reality” the average person sees.
Inflation may have leveled out, but the higher prices it caused remain, particularly for food and home utilities. Also, interest rates for mortgages, car loans, and credit cards are still much higher than five years ago.
Duuh!
I pointed this out four months ago [ https://www.lemodesittjr.com/2023/11/15/prices-vs-inflation-statistics/]
There’s another aspect of this as well. It’s not just about asking the right questions, but asking the right people.
I’m well aware of the increase in food prices, because I’m the one who does the grocery shopping, but I suspect that, in most households, it’s more likely to be a woman who does the shopping… and who’s the angriest about those higher prices.
Some costs don’t hit some people. Someone younger who’s renting or house-hunting is definitely going to be unhappy about the prices of houses or rents. Someone with a fixed low-rate mortgage or who’s paid off the mortgage won’t be as concerned, although they may balk at the price of electricity or natural gas. Likewise, someone trying to get a college education or an advanced degree – or parents helping a young adult – will be more directly impacted than someone not having to worry about education costs.
And, as I pointed out earlier, many of the costs that worry people aren’t fully factored into the “favorable” economic statistics, which is why so many people don’t believe the numbers.
But I do wonder why those smart writers at The Atlantic took so long to figure it out, though.