Welcome to Z-Pack:.one topic, 2 minutes ⚡️

If this is your first Z-Pack, welcome - I'm Zach.

I’m chronically online, finding out how the world works.

⬇️ Let’s get it.

📊 Vibe-onomics

The headlines: … OK, so what if the economy is kinda ripping right now…we’re also kind of in a recession … still…?.. right..?? I mean “recession” has a nice ring to it, doesn’t it? 😅

The reality: Most Americans currently believe they have a good personal financial situation AND that their state economy is doing well, but they continue to think that nation’s economy is doing bad 🤔

See the conflicting views here 👇

So our economy is doing pretty damn well.

In fact, the U.S. economy is doing WAY better than our peers (otherwise known as the G7 countries): Canada, France, Germany, Italy, Japan, the United Kingdom.

Why are people confused? Many economists and data analysts think it has to do with -

(1) worsening political polarization = most Republicans view the economy as bad because they just do not like the Biden administration and are also misinformed in their own personalized media bubbles

(2) Americans are concerned about housing costs

(3) Americans may still be “hungover” from the inflation in 2021-2023, which has nearly gone back down to its pre-pandemic trend

What makes this weirder is that the U.S. is the only one out of the 38 countries in the OECD (Organization for Economic Cooperation and Development) whose citizens’ feelings about the economy no longer line up with how it’s actually performing.

Still hungry for more info?

• Read author Kyla Scanlon’s piece on the economy and the vibes, from December 2023.
  

• As a positive point, here’s some good news from economist Noah Smith that touches on a few things we’ve discussed in other posts:

  • Violent crime is falling fast across the U.S.

  • We’re making progress against climate change

  • U.S. incomes are growing (yes - adjusted for inflation)

  • Millenials AND Gen-Z are doing better than their parents did at this point in their lives

  • Wage inequality has been falling!
    

• And more good news -

  • People are spending money like crazy

  • Debt as a percent of disposable income is lower than at any time between 1980-2019

Thanks for taking the Pack,

Zach

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Disclaimer: This is not financial advice or recommendation for any investment. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.