Explaining America’s Continued Economic Contradictions
Summary from the AllSides News Team
Since 2023, America has seen a persistent contradiction: while the economy is doing well by many metrics, many Americans still say the economy is bad. In May, a majority of Americans polled said the country was in a recession, when — by any standard definition — it was not. What explains this contradiction?
‘Complicated’: An analysis from The Christian Science Monitor (Center bias) noted that “while prices are not climbing as fast, they’re still much higher than when President Biden took office,” adding that rising housing costs contributed to voter skepticism. However, it also noted, “While workers have been hit with higher prices, the remarkably strong job market has helped to compensate.”
‘The Matrix of Consumer Discontent’: New York Times Opinion (Left bias) columnist and economist Paul Krugman underwent a “forensic exercise” comparing different explanations for the contradiction. Krugman concluded, “The only hypothesis that seems to work across the board involves the narratives people hear and see rather than their own experience.”
‘Biden’s Cruel Economy’: Rep. Jodey Arrington (R-TX) wrote in the Washington Examiner (Lean Right bias) that “Biden’s policies,” including stimulus and regulations, have created “an economy in decline.” Arrington argued that “people know” the economy is bad, because of “staggering” deficit spending and inflation, which amounted to a “tax” on consumers.
Why the Difference: Americans are famously partisan in their evaluations of the economy. Ahead of the 2024 election, opponents of President Joe Biden are incentivized to frame the economy negatively, just as supporters are incentivized to frame the economy positively.
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