Here are what I consider the key points about negative views on the economy.
1. People are down on the economy
2. They’re fairly positive about their own finances
3. They’re relatively positive about their local/state economy
4. Views on the economy are extremely partisan 1/
Many try to explain 1 by saying that things are really bad, eg bc of interest rates. But this doesn’t explain 2,3 or 4. Others say that people are angry about past inflation, while believing that they earned their offsetting wage increases. This could explain 2 but not 3 and 4 2/
All things being equal avg consumers prefer low interest rates and for much of the past decade they’ve been extraordinarily low. Though personal and regional finances are OK perhaps people think they’d be a lot better if rates were lower.
It is a vibecession (ie not based on rigorous economics).
Not sure people even care that much about interest rates except those who want to buy houses, and even then prices more than rates are probably the inhibiting factor. Of course if you were born into zero interest rates then rates might seem bad I suppose.
Sure but rates have been high in the past as well, higher than today in fact. Not to say people like it but interest charges are not that much of the household budget. In fact as a percentage of income consumer debt payments are actually belong long term average.
It’s the highest it’s been since before the Great Recession. So it the highest in memory for anyone born before ~ 1990 (those who were ~adults before 2008).
Yes I think memory plays a big role here, especially for the relatively young. Which is actually another version of "vibes." I mean I've even heard things like "why isn't gas $2.00 a gallon like it was a few years ago," completely ignoring COVID and the economic crash that drove down gas prices.
