It’s the economy, stupid

Yes, prices are high. But people who think the economy was better under the previous President are misinformed. Or brainwashed. From the great Heather Cox Richardson:

An article this morning jumped out at me. Catherine Rampell of the Washington Post noted that the U.S. economy “looks remarkably good.” A recent stunning jobs report, showing that the economy continues to add jobs at record rates—more than 13.9 million since President Joe Biden took office—along with yesterday’s stunning report that U.S. economic growth grew at an annual pace of 4.9% in the third quarter of this year, puts the U.S. economy at the forefront of most of the world. And inflation is back in the range that the Federal Reserve prefers—it’s at 2.4%, close to the Fed’s target of 2%.

The U.S. is outperforming forecasts made even before the pandemic began for where the economy would be now, even as other countries are worse off. 

And yet, Rampell notes, Americans are about as negative about the economy today as they were during the Great Recession after 2008, when mortgage foreclosures were forcing people out of their homes and unemployment rested at about 9%, more than twice what it is today. In contrast, consumers give high marks to the Trump years, when average growth before the pandemic was 2.5% and the U.S. added only about 6.4 million jobs.

There is a crucial divorce here between image and reality. Americans think our economy, currently the strongest in the world, is in poor shape. They mistakenly believe it was better under Trump.

As usual, people ignore facts and believe what they want to believe. Confirmation bias.

I’m negative about the cost of living in CA (see previous posts), but CA isn’t the whole country. The US economy is indeed strong, and will be stronger if the current trend of bringing manufacturing back to the US continues. And some of my negativity is about the culture of CA, where regulation has gotten out of control.

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