How Economists Miss Why Many People Are Down When The Economy Is Up

Follow professional economists on social media and you’ll see many who are confused. They don’t understand why consumers are so in the dumps, so low in confidence. “The economy is strong,” they say. “Things are getting better. We’re winning.”

Yes, GDP was on 4.9% annualized growth in the third quarter. The job market is strong. Mike Koncal, director of macroeconomic analysis at the left-leaning Roosevelt Institute, posted a graph Wednesday on Twitter. It showed that real GDP has come back to where it presumably would have been if the pandemic hadn’t happened. So, we’re all fine.