Some people don’t understand.
Paul Krugman wrote in the New York Times that “the economy has been booming this year” but that gloomy news coverage has affected people’s mood about it. Neil Irwin, in the same newspaper, called it a “great contradiction” of today’s economy: “Americans are, by many measures, in a better financial position than they have been in many years. They also believe the economy is in terrible shape.” Economists may think inflation produces both winners and losers, he continued, but most people aren’t seeing it that way.
At Bloomberg Opinion, I offer a simple explanation: People think it’s a bad economy because . . . it’s a bad economy.