Why the Economy Feels So Bad, and What It Means for the Election | WSJ State of the Stat

The U.S. economy — by many measures — is doing great. But the majority of voters still feel the economy is bad. And as one of the biggest issues of the 2024 election, it could be hurting President Joe Biden’s re-election in his race against Donald Trump. So why is the consumer sentiment index so low despite a growing GDP and a healthy unemployment rate? And how are Americans feeling about their long-term financial security amidst wide-ranging social and political threats?

WSJ explores what the data says about why voters are feeling so bad about the economy.

Chapters:
0:00 Consumer sentiment
1:05 What’s driving economic growth?
2:16 Food, gas and housing prices
5:27 Long-term economic security
6:04 What this means for the election

State of the Stat
WSJ breaks down a key stat or data point to explain the current state of the political system — and why it matters.

#Economy #Election #WSJ

[wsj]

Many investors had high hopes going into 2024. The market’s robust first-quarter rally still managed to surprise them.

[ryanwilliams]

The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[Mitzi_of_Hilltop]

The average American bases the “economy” on the groceries they buy regularly, which is undoubtedly higher and likely to stay high.
That’s why Americans are unhappy with the current economy.
Simple.

[RetrieverTrainingAlone]

Simple family budget pains: 25% increase in food prices in the past 4 years, 25% increase in rent in the past 4 years, mortgage rates increased from 3 to 8%

[overwatch]

on paper the economy is doing excellent.. but talk to the average American & its a different story.

[DonaldMark-nese]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[coke]

It’s because housing costs and food costs are very high, which is the main two things everyone cares about the most.

[robertmusil]

It's quite simple. The measuring tool for a "strong economy" is detached from the reality of people. The strength of companies isn't translating to more money for consumers. Companies are hoarding cash instead of raising wages.

[ckim]

That’s what inflation does. Economy isn’t strong when there’s no price stability

[gnhonho]

Wages are too low, having a full time job and not being able to make rent and buy groceries is offensive. That's why people don't care about what economists think.

[technicolorsoultheory]

Its morbidly funny to watch these little graphs tell me the economy is great while everyone I know is drowning under food price increases, rent or the inability to buy a house.

[MiquelMorterero]

I have savings of $1, 000, 000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?

[WoodEe-zqqv]

The economy (stock market and businesses) are doing well now.
But home prices, rents and car prices have shot up well past inflation.
And it turns out rent, home and car prices are what the average person cares about most.

[spiceyfrenchtoast]

the 2020 dollar is worth 85 cents now. No one has gotten enough pay increase to make their paychecks the same buying power as they had in 2020.

[BrigetteWaltershield]

Elections can significantly shift market dynamics and investor sentiment. It's essential for us as investors to stay informed and adapt our strategies accordingly. Historically, certain sectors thrive depending on election outcomes—think green energy vs. fossil fuels. Keeping a close eye on the candidates' policies could provide valuable insights for making smart investment choices.

[pumpkinsnow]

As a base citizen living in the US see this:
Groceries - HIGH
Gas - HIGH
Housing - HIGH
3 common important things that make a person. Ofc we complain 😂

[Astrobucks]

Because a lot of my friends are getting laid off, and my company has been on a hiring freeze for over a year. "Strong" economies don't have tons of corporate layoffs and hiring freezes. Yes, there are tons of $15 an hour burrito making and rideshare jobs, but if you want to make any kind of money, you're not getting hired right now.

[farmergiles]

The voters don't agree because the economy is not strong. The economists can't seem to understand that their models are not correct; there are too many things missing in them, and the weight given to what is present is unbalanced. The voters do not experience the economy the way the experts measure. Decades ago, Harry Truman famously said "line up a group of economists and they'll still point in every direction". Some things have not changed, or at least they haven't straightened themselves out.

[yippykayyay]

Big difference between the stock market and the grocery market

[daveharris]

I'll tell you a secret... people are tired of income inequality. They know that they are not getting properly compensated for the work they do.

So the real question is: who benefits from a "strong economy"? Not the average person.