What about the impact of media- we live in a very different media landscape than previous economic downturns. Every time I opened my social media or turned on news radio in 2022-23, I heard how awful the economy was. It’s so much worse on the right, where they want people to have a reason to not like Biden (because there really isn’t a reason- he is a good egg.) I’m curious if you think this has any impact. Especially when you look at how the US economy has been stable compared to the inflation in other countries.
Yes, great point! This could certainly be a factor. And this would jibe with the data that suggests that people feel generally good about their own personal finances vs. how they perceive the economy in general. But the Michigan Consumer Sentiment Index is a long-standing respected measure, so seems safe to rely on it. On the other hand, given the new technologies we now have and the cultural change the nation has gone through, it is certainly possible that it is simply not a reliable indicator anymore.
I didn't include the media landscape or other similar variables in the article partly because it's so hard to quantify. It's easy to say that the media is a problem, but much harder to show it. A good example is that the Great Recession had some data points that showed people felt worse even then than in the Stagflationary period, and this would have been prior to the "toxic" social media environment we are currently in, although they still had the internet and online news bias. And I would guess that newspaper headlines during Stagflation were consistently hitting readers over the head with negativity, and back then it would have been more warranted given the wild levels that the macroeconomic numbers got to. (I would love to do further research on this; perhaps a future article?)
But how do you compare the eras' versions of media with each other? Or any variable outside of strictly economic data? Not sure, but definitely worth exploring. I was a bit uncomfortable even including the "recent psychological traumas" angle in the article, but it seemed compelling and real, especially having lived through them all myself, and the feeling of our country trending toward increasing instability.
What about the impact of media- we live in a very different media landscape than previous economic downturns. Every time I opened my social media or turned on news radio in 2022-23, I heard how awful the economy was. It’s so much worse on the right, where they want people to have a reason to not like Biden (because there really isn’t a reason- he is a good egg.) I’m curious if you think this has any impact. Especially when you look at how the US economy has been stable compared to the inflation in other countries.
Thank you for your comments and support!
Yes, great point! This could certainly be a factor. And this would jibe with the data that suggests that people feel generally good about their own personal finances vs. how they perceive the economy in general. But the Michigan Consumer Sentiment Index is a long-standing respected measure, so seems safe to rely on it. On the other hand, given the new technologies we now have and the cultural change the nation has gone through, it is certainly possible that it is simply not a reliable indicator anymore.
I didn't include the media landscape or other similar variables in the article partly because it's so hard to quantify. It's easy to say that the media is a problem, but much harder to show it. A good example is that the Great Recession had some data points that showed people felt worse even then than in the Stagflationary period, and this would have been prior to the "toxic" social media environment we are currently in, although they still had the internet and online news bias. And I would guess that newspaper headlines during Stagflation were consistently hitting readers over the head with negativity, and back then it would have been more warranted given the wild levels that the macroeconomic numbers got to. (I would love to do further research on this; perhaps a future article?)
But how do you compare the eras' versions of media with each other? Or any variable outside of strictly economic data? Not sure, but definitely worth exploring. I was a bit uncomfortable even including the "recent psychological traumas" angle in the article, but it seemed compelling and real, especially having lived through them all myself, and the feeling of our country trending toward increasing instability.