Why Americans don't believe in their 'booming' economy

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SOURCES:
I've linked my sources in the blog that goes along with this video. Links are in the text.

Timestamps:
0:00 - introduction
1:29 - the data
5:26 - sponsor
7:06 - media negativity
9:40 - political polarization
12:56 - rising inequality
15:08 - discussion

Attribution:
To illustrate the story I used some clips from:
- CNN
- De-Franco-Show
- CNBC

Narrated and produced by Dr. Joeri Schasfoort
Edited by Chris Adewole

How a “Booming” Economy Could cost Biden the Election

[JCDenton]

Well considering my wages didn't move that much, my expenses went up even when I cut back, and the biggest goal post, buying a house, went from 5+ years out to now essentially impossible at current prices, and our plans to have kids went from "soon" to "probably never" because we couldn't afford a good life for our baby, I wouldn't say I am feeling any part of this "booming" economy.

[bachpham]

From what I observed, if you look at the employment data, you will see that in Biden's economy, the majority of the gains are for blue collar workers in manufacturing and healthcare. In contrast, the majority of the losses are white collar workers in tech and finance, both suffers from high interest rate and layoffs. Not to mention this also affect recent college graduates who struggle to find jobs. This group is relatively more represented in our media, both social and mainstream.

[erikvan]

It's like the GDP has basically become disconnected from the lives of actual people

[iambadatgaming]

I don't think the graphs fully include the pressure of interest rates and price increases in specific sectors. Home prices skyrocketed during the pandemic and then interest rates went up significantly. Not too long ago, about 80% of Americans could afford the average home, now its just about 30%. This does not include the fact that the main things people buy and rely on, like food, gasoline, and rent, have skyrocketed while inflation in other things that were in the CPI, like electronics, went down in value. There are also lots of layoffs in high paying industries like tech while retail is seeing a rise in demand.

[abramjones]

Why people are negative: car prices, house prices and interest, food prices

[Mr-fyzb]

Do note that the negativity bias does not only relate to people choosing for negative news rather than positive news when given the choice, but also that when people hear both positive and negative news, they are more affected by the negative news than positive news.

[MrCMPUTR]

I'd love to see a video explaining how much of an economy can be influenced by a sitting president. Personally, I think we give these people way too much credit.

[SteveBluescemi]

I've seen data which breaks down real wage changes by percentile cohorts. While medium income earners saw their incomes stagnate, high earners' wages went down and low earner's wages actually went up. Those most benefitting from the booming economy may therefore simply be younger/busier/less politically engaged than your medium voter or survey taker.

The other major factor, which you only sort of touch on here, is housing prices. While individuals' personal finances may be doing fine, the dream of homeownership has vanished entirely for many. I believe this alone could be enough to crush economic sentiment.

[grimaffiliations]

Yeah, blue state NIMBY's are the main reason people are leaving blue states for red ones. But maybe that's bad for Republicans politically as these people move to red states and turn them purple

[IFRYRCE]

It's easy. "The economy is booming" just means GDP line go up. But when the majority of the "line go up" is fueled by things like massive government investment in companies via mechanisms like the inflation reduction act (lol name), none of that GDP growth actually touches your average citizen. It's purely fueling companies and stock market numbers, while your average person is left to grapple with things like inflated grocery and home prices.
More than ever there is a separation between 'the economy' as economists see it, and The Economy, as normal people experience it.

[abrvalg]

It'd a nice rule if people remember that GDP is not all economy.

[deletedaxiom]

The whole discussion made me think of Goodhart's Law, "When a measure becomes a target it ceases to be a good measure."
Policies are made to affect the metrics that will make it look like the economy is doing well. People don't pay attention to those metrics and they go off of how their spending is effected, their savings and how secure they feel at work. It's an experience i am sure many people have had where a doctor tells you, that you are fine but you don't feel fine.

[yeetusonix]

I just got off my 3rd shift work yay ima watch this and then pass tf out good video mate

[Bandit]

The aggregate numbers on economic performance grossly underweight the costs that are actually felt by the middle class, with housing being the worst offender. Economists say that I can't possibly be worse off financially now than I was in 2019. Well I am, and by a huge margin, because I don't own a house. I make a little more money, but the mortgage on the houses I could've bought back then has doubled. I have been priced out of living anywhere near my job, and this has had a very real negative impact on my life. The same problem is impacting everyone in the US who doesn't already own a home. I say this as a staunch Democrat who will not be voting for Trump. After all, the zero percent interest rates and trillions in government spending that kicked off this inflation nightmare started under his administration. Inflation always lags money printing by at least 9-12 months.

[richardv]

Housing/rent, healthcare and higher education are through the roof, not to mention food prices. If your housing cost goes up 30% then stops going up is everything ok now? No, you've got to contend with that increase forever. If the price of a house goes up 20% do you pay 20% more? No, a lot more than that because interest rates have gone up too and over 30 years most of what you pay is interest. More jobs huh? Employment includes part-time. These are not real jobs with benefits and a future, and that's where most of the gains have come from. What the hell do I care what the government statistics say--or the media for that matter. I live in the real world.

[dovh]

I've been out of work for over 3 months now. Not a lot of jobs compared to the number of people looking. All of them pay $40k to $50k less than I was making before.

[Treyrizer]

Debt, inability to save, insane housing cost, id argue those are the main reasons

[a.pereira.s.]

This is the best econ channel on youtube, i wish there were more channels like this.

[LunaticTheCat]

The economy is booming for the rich and wealthy, not the working class. Wages are not increasing with the rising price of consumer goods, and housing is still as unaffordable as ever.

[UpstateAlgaeLaboratory]

All I know is my household income was 58k a year with 2 jobs in 2018 (me and my wife.) And were fine. Now with 3 jobs at 110k, we did not move, stopped eating out 100%(2018 we used to all the time) havent had a vacation since 2021, and went from shopping at regular grocery to Aldis, and yet 110k is not enough anymore. Noting has changed since 2018. No bigger home. No bigger spending. Less spending actually in terms of real items and services. I have a budget tracker and can compare 12 mo period expenses. Groceries alone have gone up 6k in 12 momths. It now costs us more to eat at home than we used to spend eating out. We've gone from regular brand to store brand everything. We went from a new car, to a beat up subaru to cut out payments. At 58k, we were planninng and saving for a house. And were preapproved. We just needed the downpayment. Now at 110k, the bank says we can't afford a mortgage. Which is true. The lowest house would be a 3800 mortgage. And thats in the sticks. And my wife and I are working more than ever. From 70 hrs total between the two of us, to 100 hours between the 2 of us. And this is the state of everyone I know. I feel like the numbers don't really show that to achieve this "boom", the average American has had wages increase (sometimes) while their standard of living has decreased. Of course inflation is down. Because people cant afford it anymore. Economists seem to act like dropping inflation negates the inflation that already happened. My grocerys are still more than last year. The metrics are misleading. The bad stuff in the past, still effects us today. And all this is not taking into account the health insurance subsidies that are ending for lower income. Allot of people I know havent had to pay for insurance since the pandemic. That now kicks in this year.