According to a recent poll by CBS News, Americans are experiencing the effects of inflation on their quality of life and opportunities.
The effects of inflation may extend beyond the immediate strain on individuals’ finances, causing a perception that it is hindering opportunities in the US and a belief that the country’s economic struggles in recent times have been more challenging compared to previous generations.
Despite positive job reports and discussions of a “soft landing” by economists, individuals tend to prioritize their personal experiences over macroeconomic indicators. Furthermore, a large majority report that their incomes are not increasing at the same rate.
Many individuals now believe that their quality of life is lower than that of their parents, particularly those in the millennial and Gen-X generations who are currently in their most productive years. This perspective goes against the traditional idea of the American Dream.
In recent years, Americans have experienced inflation at levels not seen in four decades. When asked to compare current challenges to past events, Americans believe that the economic struggles caused by the pandemic have been the most severe in several generations. This includes the 2008-09 crash and Great Recession, as well as other periods of recession in the 90’s and 80’s. The current situation is even considered worse than the inflation and gas shortages of the 1970s.
Today will surely be fresher in mind and bring some recency effects here, but it does underscore the fact that many adults have not been through this kind of inflation before. (And for those over 65, who were adults in the 1970s, the country’s more recent difficulties stand out for them, too.)
The discrepancy between micro and macro levels?
In recent months, the country’s conventional economic indicators, such as employment growth, GDP, and inflation rate, have frequently displayed indications of growth or progress.
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Source: cbsnews.com