Alright, I'm a psychologist.
There's a big gap in how people are experiencing the economy, based on what kind of assets they had pre-pandemic.
If you owned a house and had some stock in the bank - yes, you noticed that the grocery store was more expensive, but you also were watching your house moon on Zillow (with your 3% interest rate) and your 401K taking a jump. You are paying more, but you also feel pretty wealthy, so you kept buying, which is why this has been a really weird mix of high inflation and high consumption. That's around 60% of the country.
If you had few assets, rented, and were living pay-check to paycheck, you saw your rent spike, your grocery bills spike, the kids clothes and shoes spike, and you aren't getting enough additional income from your job to make up the difference, so you feel like your sinking, which you are. That's around 35% of the country.
And on a related note - the middle class has been disappearing in this country for the last 50 years. We've added some to high income, and some to low income. If you wonder why Sears and JCPenny and shopping malls have disappeared, it isn't just Amazon. These were stores built for the middle class and there just are as many left anymore. It tracks pretty close to manufacturing and other skilled labor positions.
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