
James Downie at MS Now takes a look at the current massive economic discontent among Americans:
For decades, when large numbers of Americans expressed negative feelings about the economy, they were generally reacting to high unemployment, high year-over-year inflation or both. But even as inflation decreased in the latter half of former President Joe Biden’s term, the issue played a central role in Trump’s return to the White House. Since Biden, though, Americans’ views of the economy have been much more negative than typically associated with inflation around 3% and unemployment below 5%.
To be clear, many Americans were already struggling despite low unemployment and inflation before and after the pandemic. Frustration over a two-tiered economy was widespread years before Covid-19, powering the Occupy movement in 2011 and, later, Sen. Bernie Sanders’ first presidential campaign. As economist Mike Konczal noted, prices for essentials, such as food, electricity and motor vehicle insurance, have risen faster than inflation overall — a burden felt more heavily by households with lower incomes. And home prices have spiked while mortgage rates are at their highest in 15 years.
But where past economic discontent was easily explained by measures of unemployment or inflation, clearly something else has been driving the anger in the past few years. A March paper from Jared Bernstein, former chair of the Council of Economic Advisers, and Stanford’s Daniel Posthumus, found that “using four-year inflation rather than the more often used annual measure” better predicts consumer sentiment, including recent pessimism. The pandemic-era inflation spike has lingered in voters’ minds because, even as the rate of inflation has come down, prices remain higher than they are “supposed” to be — i.e., what they roughly would have been if the pandemic inflation had never happened. (Polling expert G. Elliott Morris reached a similar conclusion.)
If milk prices jump by 100% one year and 3% the next, you will not forget in the second year that milk used to cost half as much. It also explains why voters would react so negatively to inflation that is not high by historical standards. As economist Paul Krugman is fond of pointing out, prices rose by almost the same amount during Ronald Reagan’s first term as they did under Biden. Because Reagan followed the high inflation of the 1970s, however, voters were used to the inflation of his first term, so he could still run on “morning in America.” Whereas in 2024, the Democrats were defeated.
It is a different America than it was in 1982. There were still many people around who had gone through the Great Depression and WWII. They definitely had different ideas about what constitutes hardship. The baby boom was just coming into full adulthood and were getting ready to take over. Everyone was glad the 70s of Vietnam, Nixon, Watergate and stagflation were coming to an end.
The whole zeitgeist had shifted, not just the economy.
We experienced a little bit of that with the election of Obama. For a time it felt like real progress was being made. Then the Republicans staged a massive tantrum so it didn’t last as long as Reagan’s comeback did but it was real. And as Downie points out, the underlying economic discontent had already been building for quite some time.
Today the country is almost at the point of full revolt. The corruption, the chaos, the billionaire tech-bros, the phoniness along with an economy that is failing to deliver to the working and middle classes is making people angry and depressed. (Not to mention that we went through a horrific trauma with the pandemic that we’ve treated as nothing more than a blip and it was anything but.)
The question is what can a president do about it?
“They could be working with Congress on the affordability agenda, in housing policy, child care, energy, health care,” Bernstein said. “Some of those solutions take time, but newer policy models tend to include immediate help through some form of subsidies or price caps, like capping energy price hikes.”
These measures don’t target “inflation” writ large; instead, they focus on essentials most important to household spending that are unnecessarily expensive because the markets for the items are flawed. But, Bernstein said, “the main acclimation must occur through a combination of time and real wage gains.”
I’m sure that would help. But consider that Joe Biden actually sent out checks to people and had the biggest job and wage growth among the working class in 60 years. It didn’t help. I think the most important thing is to recognize that the whole system is tilted to the wealthy and powerful whether it’s Elon Musk or Jeffrey Epstein and there seems to be no accountability for it. And at the top of that list is Donald Trump the billionaire who is currently stealing the country blind right out in the open.
The Pentagon awarded a multi-million-dollar defense contract to a robotics startup affiliated with Eric Trump, one of President Donald Trump‘s sons, in a move panned by some Democrats as “corruption in plain sight.”
Foundation Future Industries, a Silicon Valley startup developing humanoid robots, landed the $24 million contract to test its “Phantom” android with the Marine Corps, according to a Thursday, April 23, Fox Business report. Company founder and CEO Sankaet Pathak appeared alongside Eric, Foundation’s chief strategy advisor, on the network’s Mornings with Maria on Thursday to speak about the technology and similar advancements in China.
The economic inequality is bad enough. Combined with the abuse of power, chaos and corruption of these Trump years it’s left people in a tailshpin. And as great as those policy prescriptions are (and I totally hope the Democrats enact them as soon as possible if they manage to get the majorites to do it) it won’t be enough. There has to be an accounting for what has happened and reforms to prevent it from happening again, at least in the foreseeable future. (Money is like water and will always find a way eventually…)
Until we can find a way to ensure that there is some sense of fairness and justice in our culture, this era of bad feelings is going to continue.







