According to a recent Harris Poll reported by The Morning Call, many Americans have misconceptions about the U.S. economy. The poll reveals that 55 percent of Americans believe the U.S. economy is in decline, and 56 percent think the country is in a recession, despite consistent GDP growth since the last COVID-driven recession in 2020. The public's perception is not aligned with the economic reality, as GDP has been rising. Additionally, 72 percent of those polled believe that inflation is increasing, even though it has fallen significantly from its post-COVID peak. Similarly, 49 percent of respondents believe that the unemployment rate is at a 50-year high, when in fact it is only about 4 percent. Furthermore, 49 percent of respondents mistakenly believe that the S&P 500 stock average is down for 2024, when it actually closed out 2023 with a 24 percent gain. These findings indicate that the American electorate is exhibiting increasing disagreement about basic economic facts and a declining trust in sources of factual information [3f200443] [014fce3e].
The public's misconceptions about the economy have significant implications for public opinion. Despite the positive economic indicators, many Americans still perceive the economy negatively. This perception is based on their financial struggles and the colloquial meaning of terms like recession and inflation, rather than their economic definitions. Americans compare their lives before and after the COVID-19 pandemic, noting that prices and expenses have increased, making life less affordable. The media's coverage of the economy has also contributed to the public's skepticism, as they have lost trust in the government and media's portrayal of the economy. Until people feel relief from the financial stress of the pandemic and rapid inflation, they will remain pessimistic about the economy [014fce3e].
MSNBC's host Stephanie Ruhle acknowledges that inflation is high but does not believe it indicates a recession. She argues that the president doesn't control prices or inflation. The yearly inflation rate under Trump was 1.9 percent, whereas under Biden it is currently at 5.7 percent. Ruhle examines the prices of groceries and points out that some retailers are cutting prices to draw in more customers. Inflation has been driven by rising gas prices, medical care costs, and rent. Peter Spiegel, U.S. Managing Editor of the Financial Times, discusses how detrimental inflation is for the Biden campaign. Barry Ritholtz, founder of Ritholtz Wealth Management, criticizes the poll and questions its accuracy [4f20d75f].
Journalist Matt Taibbi criticizes the mainstream media and the Biden administration for not being in touch with ordinary people's perception of the economy. Taibbi argues that Democrats are trying to convince Americans that their views on the economy and inflation are 'not rational.' He suggests that politicians, including Joe Biden, may not understand basic economics and the inflationary effect of adding trillions to the Fed's balance sheet. MSNBC host Stephanie Ruhle has called for an 'economic explainer' to tell viewers that they are economically better off than they think. Ruhle highlights a Federal Reserve report showing that people are still struggling to cover day-to-day expenses. She mentions how some major brands are cutting prices to entice consumers. Taibbi believes that politicians are out of touch with ordinary people's experiences because they live in wealthy enclaves and don't understand the financial challenges faced by the public [f5b3519a].
The United States is facing a crisis as the Constitution is being undermined, according to an opinion piece in The New York Times. The article highlights the need to address public ignorance and fake crises to prevent the rise of radical politics. Despite the positive economic indicators such as the growing economy, historic highs in the stock market, and a near 50-year low in the unemployment rate, a significant number of Americans believe in false information about the economy, crime rates, and unemployment. This perception gap between opinion and reality is a political problem and can empower extremist movements [5c440f4b].
The public-school monopoly and teachers’ unions have effectively brainwashed a generation into embracing socialism. The U.S. economy is facing gross government overreach, inflation, and dismal economic confidence. Grocery prices have increased by 25% over the past four years, and the cost of gasoline jumped 49.6% in 2021. Inflation is not limited to groceries and gas, as homeowner's insurance premiums in 2023 were up 11.3% on average nationally. The policies of the Biden administration are blamed for the downward economic spiral. Teachers' unions, with their political power, push irrelevant political demands and kept public schools closed during the COVID-19 pandemic. School closures have had devastating economic implications, with students potentially earning $49,000 to $61,000 less over their lifetime and the impact on the U.S. economy amounting to $128 billion to $188 billion every year. Teachers' unions also leverage their power to influence teacher education and school curricula, promoting a single political party's ideas. Empowering parents with education freedom is crucial, as 13 years of government indoctrination harm society. The future of the country depends on enacting universal or near-universal school choice [715e7486].
The article from Newsweek suggests reducing burdensome regulations, focusing on reliable and low-emission energy sources, and lowering taxes as ways to alleviate the cost of living for Americans. It emphasizes that until people feel relief from the financial stress of the pandemic and rapid inflation, they will remain pessimistic about the economy [014fce3e].