It’s been widely reported that U.S. consumers have been angry about the state of the U.S. economy. But why they’re so angry has been more of a puzzle. When we look at economic indicators for retail sales or consumer spending, we get a story about “the resilient American consumer.” But if consumers have shown resilience, what’s powering their anger? While part of the reason might be that so many consumers say they are worse off now compared to 2019, this sentiment raises questions because the strength of the labor market, the strength of the U.S. economy, and the resiliency of consumer spending all suggest the U.S. consumer is doing better today than before the pandemic.
Research: What Explains the “Vibecession”?
