Americans Refuse To Be Happy

According to Americans, it is bad out there. Real bad. This month, the University of Michigan’s index of consumer sentiment dropped to its lowest point since 1952, when the survey started. A poll of potential Republican voters found that just 43 percent rated the economy as “excellent” or “good” and 55 percent as “fair” or “poor”; for potential Democratic voters, the shares were 5 percent and 94 percent, respectively. Low-income families are nervous, and so are high-income ones. Students and retirees are dour. Rural and urban voters are dissatisfied. People are worried about the present and future. They’re concerned for themselves and their neighbors.Indeed, households are feeling worse about their personal finances and the broader state of the economy than they did during the Great Inflation of the 1970s, when the cost of groceries doubled and the government was forced to ration gasoline; the Volcker shock, from 1979 to 1982, when the average interest rate on 30-year mortgages hit 18.6 percent and the country went into devastating back-to-back recessions; the early months of the coronavirus pandemic, when 200,000 firms collapsed, the unemployment rate flirted with 15 percent, and essentials such as infant formula became impossible to find; and the Great Recession, when the stock market lost half its value, the banking system teetered on the brink of implosion, and lenders foreclosed on 6 million homes.I have been covering the “vibecession” for a few years now, and I thought I mostly understood it. Headline economic statistics are failing to capture the fragility and strain that consumers are experiencing. Families are struggling to afford child care and health care. The housing shortage is eating into incomes. Inflation is pissing consumers off every time they hit the grocery store. Inequality is cleaving the haves and the have-nots. A hiring freeze is preventing young people from embarking on their chosen career. But seeing the latest consumer-sentiment figures an