By the headline numbers, the U.S. economy looks great — a once-in-a-generation investment boom has created lots of winners, and economists say the good times are not over. So why are so many Americans still feeling sour about it?
U.S. economy (Credits: MarketWatch / Dow Jones)
According to a new analysis by MarketWatch’s Jeffry Bartash, the disconnect comes down to who actually feels the gains. The economy is growing, but the benefits have not reached most households in the ways that change daily life.
U.S. Economy: Growth Without Rising Wages
The crux, per the report: “The only way most Americans are likely to appreciate strong GDP reports are if they can feel the actual benefits of a steadily growing economy in their own lives — mainly through rising real wages, lower inflation and lots of available jobs. None of those conditions exist right now.”
As Eugenio Aleman of Raymond James put it: “The economy is growing, but it’s not translating into higher income growth and employment.” The investment boom has minted winners, the report notes, but “many Americans are feeling left out” — watching the boom from the outside.
What Could Change the Mood
Economists quoted in the piece warn the good times have an asterisk. “If they were disappointing, the economy could slow more sharply” — meaning that if the investment boom underpinning this growth fades, the slowdown could be more severe. Until rising wages and lower prices show up in ordinary paychecks, strong GDP numbers will keep feeling like somebody else’s economy.
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Source: MarketWatch — read the full story there.
