US GDP Statistics Belie Economic Reality

id5201311 04102023 DSC01375 Treasury department - The Japan Weeknd Magazine
Commentary
One year ago, the prevailing consensus among economics and market analysts was that the United States would enter recession at some point in 2023 on the back of rising interest rates and tightening credit. March’s banking crisis seemed to confirm that the worst was yet to come.
And then, suddenly, nothing happened. Not only was there no recession but also growth in the U.S. economy accelerated, with real gross domestic product (after adjusting for inflation) doubling from just over 2 percent in each of the first two quarters of 2023 to 5.2 percent in the third quarter.
At the same time, middle- and working-class Americans feel excluded from any benefit coming from this reported economic growth. According to a November 2023 Financial Times poll, the majority (55 percent) of Americans feel financially worse off. The perception is to some degree skewed on party lines. Some 82 percent of Republicans say they feel they are worse off financially, while only 31 percent of Democrats admit they feel worse off. Yet nearly half (46 percent) of Democrats say they’ve seen “no change” to their financial condition under so-called Bidenomics, leaving only a quarter of Democrats who believe that President Joe Biden’s economic policies have made things better for them….

Share:

Hot News