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    8 months ago

    Food and energy costs fluctuate wildly, mostly due to external factors (OPEC, geopolitical landscape, global futures markets, etc), so they are excluded when making policy decisions because they would add too much noise. Nevertheless, energy costs affect the cost of nearly everything else, so it is indirectly reflected in the data.

    I could be wrong, but I mostly agree with the premise of the article. All the data I’ve seen shows most people are better off compared to 2019 (which also excluded the same stuff). As the article states, consumer spending habits are also reflective of good economic conditions. Anecdotally, everyone I know is at least a little better off since 2019, financially (lower to upper middle class, and a few upper-class people). I see a lot of “help wanted” signs with wages higher than the 20% inflation since 2019. So, I’m curious why the polls and generally everyone says the economy is worse.

    One bad indicator I’ve seen are the costs of home down-payments outstripping inflation (which would mostly affect would-be first-time homebuyers). That has been following the same trend for decades though. There have been a lot of tech mass layoffs, but that only affects a small percentage of people. Taxes have increased for very high income people ¯\(ツ)/¯.

    I’m no Biden simp (though I prefer him to Trump). I think the economy is mostly outside the president’s control. I just find the discrepancy in data, and what people say interesting.