The American public has been unusually disenchanted with the current state of the economy over the past few months, even though economic indicators have been unusually positive. Despite the fact that unemployment is at a historic low and consumer spending has never been stronger, Americans are not spending or voting like they should given the state of the economy.
This phenomenon has puzzled economists and politicians alike, who believe that the economy should be driving political opinions and wallet-opening decisions. Instead, people are demonstrating a lack of enthusiasm for the economy, with far less consumer spending and fewer people casting their votes in favor of politicians who advocate for an economically friendly agenda, such as tax cuts and deregulation.
The reasons for this phenomenon remain unclear, though some speculate that it could be due to a lack of wage growth or worries about economic uncertainty, such as the fear of another potential recession in the near future or the trade war between the United States and China. It could also be the result of a lack of confidence in the current administration and its handling of economic matters, as there has been an overall dimmer evaluation of the state of economy this year compared to the past few years.
Whatever the cause of this gap between the strong economic indicators and the American public’s lack of response, it is certainly something to be watched. The economy is always in a state of flux and it could be that the current downturn in public reaction is only transitory. Nevertheless, it stands to reason that it could be indicative of much larger economic trends, and it may be worth keeping an eye on in the months and years ahead.