This is first from an american perspective, but applies more broadly as krugman starts to grapple with the extremely low consumer sentiment in the us
The standard predictors are no longer working, and the standard explanations are not on particularly strong grounds
Politically, we need to understand why people are actually so unhappy when their standards as consumers has rarely been higher, even accounting for areas with relatively higher prices increases
Many people talk about their pet topics as “crises”, but even accounting for these “crises” people can afford as much or more than ever
MeringueSuccessful33 on
My personal hypothesis is that the erosion of consumer surplus is what is nuking consumer sentiment.
People can afford the same or more but it doesnt feel like it. You don’t feel like you can get a “deal” anymore.
Adminisnotadmin on
Recall the Era of Good Feelings? This is the opposite of that.
More bluntly, everyone’s pissed off and nothing matters (is the prevailing sentiment both online and when you talk to people on the street).
Truth be told, traditional markers of adulthood have been delayed for two generations now such that it really isn’t a leap to make that connection, meanwhile older price consumers who recall $1/gal gas don’t like their grocery bills.
When everyone’s like this, of course I’m gonna say shit sucks but I do my best.
3 Comments
This is first from an american perspective, but applies more broadly as krugman starts to grapple with the extremely low consumer sentiment in the us
The standard predictors are no longer working, and the standard explanations are not on particularly strong grounds
Politically, we need to understand why people are actually so unhappy when their standards as consumers has rarely been higher, even accounting for areas with relatively higher prices increases
Many people talk about their pet topics as “crises”, but even accounting for these “crises” people can afford as much or more than ever
My personal hypothesis is that the erosion of consumer surplus is what is nuking consumer sentiment.
People can afford the same or more but it doesnt feel like it. You don’t feel like you can get a “deal” anymore.
Recall the Era of Good Feelings? This is the opposite of that.
More bluntly, everyone’s pissed off and nothing matters (is the prevailing sentiment both online and when you talk to people on the street).
Truth be told, traditional markers of adulthood have been delayed for two generations now such that it really isn’t a leap to make that connection, meanwhile older price consumers who recall $1/gal gas don’t like their grocery bills.
When everyone’s like this, of course I’m gonna say shit sucks but I do my best.