In the second quarter of 2024, inflation emerged as the dominant theme in economic news coverage, significantly influencing public perception of the economy. A report from Media Matters for America highlights that corporate broadcast networks lagged behind PBS in their economic reporting, with PBS airing 113 economic segments compared to ABC, CBS, and NBC, which aired only 19, 31, and 28 segments, respectively [2b5ab520]. This disparity in coverage raises questions about the depth and breadth of economic discussions presented to the public.
Fox News and MSNBC led the cable news landscape, with Fox particularly focusing on inflation and criticizing President Biden's policies. This focus on inflation was reflected in the reporting, where inflation was mentioned in 52% of qualifying articles [2b5ab520]. The Wall Street Journal published 42 economic articles during this period, surpassing the combined output of The Washington Post and The New York Times, indicating a robust engagement with economic issues, albeit with a notable lack of coverage on major topics like labor unions and economic inequality [2b5ab520].
The perception of the US economy among Americans remains pessimistic, with a Reuters/IPSOS poll revealing that 43% of respondents believe former President Trump has a better approach for the economy compared to 37% for President Biden [37ecf06d]. This disconnect between perception and reality can be attributed to various factors, including inflation, political polarization, misinformation, and the lingering effects of the COVID-19 pandemic [37ecf06d] [ca687e47].
Inflation continues to shape public sentiment, with many Americans expressing a preference for a recession over high inflation, as noted by Minneapolis Fed President Neel Kashkari [37ecf06d]. The working paper 'Why Do We Dislike Inflation?' suggests that people's negative views on inflation stem from its perceived impact on their financial well-being and the economy at large [37ecf06d].
Political polarization further complicates the landscape, as research indicates that opinions on inflation are increasingly divided along party lines, with Republicans more likely to blame the Biden administration for current inflation levels [6ad4e243]. Despite the negative perception, real hourly wages for the lowest 10% of earners grew by 12.1% between 2019 and 2023, according to a study by the Economic Policy Institute, highlighting a positive economic performance that often goes unrecognized [37ecf06d].
The Sierra Nevada Ally article 'Why people think the economy is doing worse than it is: A research roundup' discusses how personal financial circumstances filter perceptions of the national economy, with factors like economic inequality and political partisanship playing significant roles [c51b20a5]. The article emphasizes the need for accurate information to combat misinformation that fuels fears about the economy [d4b28daa].
As the 2024 presidential election approaches, Democrats are concerned about the impact of these perceptions on voter sentiment. Economic commentators argue that while measures like employment numbers and job creation indicate a strong economy, many working-class Americans feel the weight of declining economic opportunities and inflation [0b3d87a7]. The Left is urged to present a vision that addresses the high costs of living and ensures steady wage increases to resonate with voters [0b3d87a7].