Bad economy? What exactly does the economy actually mean.

[USAFRetired_Liberal]

Every since Biden has become POTUS, the MSM and Republicans talk about the bad economy. But what exact makes an economy good or bad. Under Trump, they talked about the big stock market number as if that was the barometer (I never thought that that should be a gauge)….they have always talked about jobs and unemployment as being “the economy”…..and this is why I am so confused now because the job market is so great now that anyone for the most part can get a job and they are getting paid more. Unemployment is really low, and the stock market is still high….but the republicans along with the media is all doom and gloom…..now all of a sudden the have switched the barometer and made it all about gas and inflation as being “the economy”

[bucolic_frolic]

1. As a polling question & political issue, economy means how does it feel?

Wages are up, gasoline is available if expensive. I put more worries on the price of food. Trucking and commodities are raising food costs, as are greedy retailers who can't move other products, so they raise food prices to keep profits steady.

So what does bad economy mean? You got a job, you pay your bills, covid is vaxxed. But you fear going to the store, and abortion is all but illegal, neither of which can be blamed on Biden.

So prices are up but the economy as an issue is not too bad. Bad is recession and prices are rising and you can't pay your bills.

[HariSeldon]

7. Exactly why I hate Powell's "medicine"

Caveman-like, he knee-jerk responds "inflation bad, must raise interest rates!" Inflation is terrible for those on a fixed income, true, but raising interest rates is what will really make the economy bad: fighting inflation by raising unemployment.

The truth is that the correct tool to fix this lies in the hands of Congress: tax the rich (who really don't change their behavior that much due to taxes) to soak up some of the money that was handed out too easily, instigating the inflation. And if Democrats had the guts to actually fight for this in that context, it could be a great midterm message...except Manchin and Sinema are the flies in the soup.

[bucolic_frolic]

9. Fat cat bank accounts as a cause of inflation has its problems

Fat cats don't spend it. After a yacht and a Porsche they manage their assets based on tax rates. They live off their business income and keep the money in the bank or in the markets to grow their wealth.

Soak the rich as a campaign message is mixed at best because voters know they can easily be the next ones taxed no matter their income level, and polls show as much as people think tax inequality is a problem they also say that is the system and if they ever make a lot of money they want low tax rates on their wealth as well. So that is a running in place issue with no traction.

[Walleye]

2. The Republicans all thought Trump took over a bad economy from Obama and made it better

It doesn’t matter what’s actually true.

[Johnny2X2X]

3. 2021 was the best economy in US history by some measures

Highest job growth of all time. Best GDP growth in 40 years. Best wage growth in decades. Stock Markets went up 12%.

Inflation overshadowed all of that, and inflation does matter a lot, but it's just ridiculous that all of those other facts were overlooked. And what's more, you cannot talk inflation without also talking wage growth. Wage growth was 6% in2021 and muted much of the effects of inflation for people. In fact, wage growth for the lowest wage workers was actually greater than inflation and in excess of 8%.

[MichMan]

5. Wage growth of 6 % on average doesn't mean everyone got a 6% raise

[Johnny2X2X]

6. Yeah

Some got 10%, others got 2%. But the overall effect was to mute inflation for most workers. And the lowest wage workers actually on average got ahead of inflation.

[anarch]

4. what it means in our society is "imaginary line of happiness keeps going up"

what it actually means in whatever passes for objective reality is, are the common conditions of material existence reasonably comfortable for most people? Like, do most people worry about where they are going to get their next meal? If not, then "economy good." Are there loads or people who are desperate for even basic things like adequate shelter from the weather? If so, then "economy bad."

That's how I'd define it anyway.

[jimfields33]

8. A little of that yes

But many regular people who can afford the gas and food raised prices still think the economy sucks because of those two measures. It doesn’t even matter if they got a 200 dollar raise each month to cover it. They know that last year the bought groceries for 80 bucks that cost 100 dollars now. Same with gas. Add in the down 401Ks and people are not happy. GDP and unemployment numbers are an afterthought maybe.

[anarch]

10. because it is eating away at their sense of security, even if they're not starving now

that's exactly in line with what I mean--like, there used to be a "middle class" which are the kind of people you are talking about, but even those people at this point are feeling like things are going to shit as they look at their dwindling savings and less hope for the future.

I mean a lot of this is inevitable as we move further into the climate crisis, but yes your "regular people" who aren't going to starve to death any time soon are also feeling a sense of doom.

[DetroitLegalBeagle]

11. yep

The average person doesn't care much about GDP and other metrics. That's for the economists and MSM. They only measure they really truly care about is their wallet/checkbook. If they feel they are hurting there, then all the rosy numbers you throw at them isn't going to matter.

[NoMoreRepugs]

12. Half of all adults in the US read at a 7th-8th grade level.

That’s an American school level, we don’t make the top 20 in either math or science scores if memory serves me correctly.

So with that skill set we expect Americans to understand the complexities of the Worlds largest economy?? Yeah, right.

Cheap stuff - good. More $$$ to fill my pickemup 600hp Ram truck - bad.

NEVER underestimate the ignorance of the American public.

[MichMan]

13. Everyone's situation is different; averages mean nothing to any one person

People keep harping on how average wage growth makes up for the rise in inflation as determined by the CPI. That is meaningless in regards to any individuals own situation.

People don't feel like their wages are keeping pace just because other people got a 10% raise, if they only saw 2%.

The CPI is a calculated formula based on a mythical definition of what "average" people buy and may have zero relevance to what people actually spend.

I am recently retired on SS and live in a rural area. We are not affected by any big rent increases or trying to feed four children, so inflation in those areas doesn't hurt us directly. However since going shopping is a 50 mile round trip, gas prices are a really big deal as it costs double than it did last year.

Someone raising three kids in an urban area is getting slammed by rent and food increases, but probably drive less, so gas prices aren't as important to them.

All I know is that in the last 6 months, my retirement account lost 3x what I ever made in salary from working and I am spending $200 extra per month in gas.

[Sympthsical]

14. GDP shrank last quarter.

Two quarters in a row, and you've got a recession going.

Wages aren't keeping up with inflation, gas and food prices are increasing, housing remains its usual untenable self.

Mix in a falling stock market and GDP retraction.

What part of this makes people keep saying, "The economy isn't bad. It's the media!"

Because I want to live on that planet.

[MichMan]

15. You have many people that finally got a long awaited raise after a couple years of not getting one

and they see it getting eaten up completely (and then some) by rising housing, food and gas prices. You expect them to feel good about that?