Almost two years have passed since I began trying to draw people’s attention to the widening gap between economic perceptions and economic reality.
At the time the economic picture was mixed, with rapid job growth yet also rising inflation; even given that mixed picture, consumer sentiment seemed abnormally low.
I think it’s fair to say that I encountered a lot of pushback.
Inflation was, after all, rising, and many economists warned that getting it back down would require a punishing recession.
Unemployment is still near a 50-year low, yet inflation has been falling fast; consumer prices didn’t rise at all in October, although that was partly statistical noise.
Persons:
Goldman Sachs, Biden