readers say
“We have been walking the fine line between recession and inflation for almost two years.”
FILE – President Joe Biden delivers an economics speech on Wednesday, June 28, 2023, at the Old Post Office in Chicago. ` Photo/Evan Vucci
Economists may be watching the US economy with cautious optimism, but Boston.com readers are not yet convinced that the country’s financial health is improving.
Inflation is still easing and is unlikely to return to pre-pandemic levels any time soon, but the labor market is strong, unemployment is at its lowest level since 1969 and wages are rising.
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We’re not quite over the hill yet – CPI hit 3.2% in July, according to the Bureau of Labor Statistics, compared to 3% in June – but given the improvements, economists are now forecasting a “soft landing”. “or a slowdown in economic growth preventing a recession.
Despite the optimism of economists and business leaders nationally and here in Massachusetts, the majority of Americans don’t believe the economy is improving. A poll conducted by CNN found that 51% of Americans believe we’re still in a financial recession. Our readers told us in a recent survey that they think so.
When asked how they assessed the current economic situation, 76% of the 229 readers who took part in our survey answered that the situation had not improved.
“It’s a mess,” said one reader. “Zero interest rates have pumped the economy full of cash and created many bubbles that have not yet burst. look below.”
Are you optimistic about the economy?
Yes, the economy seems to be doing better.
No, the economy has not improved.
How do you assess your personal financial situation?
I am satisfied with my personal finances.
I am dissatisfied with my personal finances.
The lack of confidence in the economy could be an expression of dissatisfaction with personal finances. Financial anxiety is on the rise among Americans, and more people are reporting their situation is getting worse rather than better. Forty-one percent of Boston.com readers said they were satisfied with their financial situation, but those who weren’t cited housing costs, food, and gas prices as reasons.
Lisa, from Billerica, said her pay hasn’t increased this year and she’s not sure if that will happen next year, which has become a stressor given the rising cost of living.
“At the macro level, the US is getting better, but at the micro level, it is more difficult. Housing is ridiculous. When you have a steady income, it’s really hard to take. Groceries, going out, everything costs so much more,” she said. “Although the job market is supposedly ‘hot’, it only applies to certain industries and not to all. To be honest, my “retirement” looks bleak, too. [Ten] There are still many years to go and my 401K is nowhere near where it needs to be for me to actually retire. It’s depressing.”
While President Biden and his administration have hailed the achievements of “bidenomics,” many readers balk at a politician’s victory over economics.
“We are on an unsustainable path into a recession and the Fed is deliberately leading us there. However, this is not entirely the Fed’s fault. Bidenomics led to record government spending that will take years to curb. The old saying, “There’s no such thing as a free lunch,” is as true today as it was when it was first uttered,” Hanover-based John told Boston.com.
Below are more responses from readers sharing their thoughts on the economy in general and how it affects their own finances.
Some answers have been edited for length or clarity.
Are you optimistic about the economy?
NO
“I’m totally stressed out about the economy. This gloom and doom is not due to the media, but to what I observe around me. The increase in homelessness and crime out of desperation and the cost of healthy eating are just a few of the things we are all experiencing. I have a relatively good healthcare job at a large academic institution in Boston. I’ve always viewed healthcare as a safe profession as everyone needs healthcare at some point in their life, but it’s incredibly worrying to see the weekly report from the Worker Adjustment and Retraining Act (WARN) and the massive layoffs at our top healthcare facilities . Stress keeps me up at night.” — Kate D, Everett
“The forced ‘retirement’ due to the pandemic has limited my spending, travel and charitable giving. No one could have predicted the financial and emotional damage caused by Covid. In addition, the housing situation is preventing more and more people from making planned changes. Personally, I have to stay put, even if I’d rather go smaller. Can’t justify the hassle and can’t find anything in my price range.” — Sam, Cambridge
“The council taxes are out of control. Affordability starts at the local level, and constant revaluations combined with two and a half tax increases will hurt homeowners more than any 7 percent mortgage.” — Scott H., Attleboro
“I think we’re fortunate in Massachusetts to have better wages than most other parts of the country, so we’re a little deaf to the fact that everything costs more and that has a knock-on effect. The economy is no better and I fear it may get worse before it gets better.” — Rick, Hopkinton
“Everything is so expensive. It becomes impossible to save money. Inflation may have come down now, but prices are still significantly higher than they were a few years ago. Interest rates continue to rise with no end in sight, making borrowing impossible and business growth stagnating. Government must stop wasteful spending and stop shutting down the energy sector.” – Bill, Brighton
“We have been walking the fine line between recession and inflation for almost two years. It makes it nearly impossible to invest as a small business owner without knowing when the economy is really going to collapse and how to prepare for it. In addition, the cost of everything – particularly wages – has increased significantly and our company’s earnings have been flat to declining. It’s hard not to blame our leadership in Washington (silly spending) and the Fed for failing to aggressively nip inflation in the bud as they should.” – Jay, Boston
“The prices of basic necessities like petrol and groceries are way too high, especially for families with children. We’re spending hundreds more a month than we did a few years ago.” — Kristina, Framingham
Yes
“I’m happy about all the jobs and the salary increases, everything looks good. I don’t understand why people are bashing Biden. I think he did a great job.” — Michael L., Mansfield
“Our economy is strong compared to other nations in Europe and the world. We’re fortunate that Biden and the Federal Reserve are keeping us out of a recession.” — Philip W., Boston
“The economy is doing pretty well thanks to Biden. Inflation has fallen (near 3.2%) and unemployment is at a record low. However, there is still too much negative news and information bias. Much of this is because politicians (often from the right-wing Trump Party) are working overtime to divide us. But optimism is a choice and a reality for winners who don’t breathe every negative word about inflation, spending or debt. Especially when it comes to Joe Biden’s undeniable accomplishments.” — Philip S., Colo.
“People have a guilty conscience about the economy because that’s what the media, especially the right-wing media, are telling them. However, if you actually look at the numbers, you’ll see that there has long been a disconnect between the actual performance (the economy is pretty good) and the narrative (the economy is bad). This does everyone a disservice and holds the potential for bad policy making. The biased stupidity has to end someday.” — Roy, Methuen
“The Fed, under President Biden’s superb leadership, has done a slick job of mitigating ‘Trumplation’ and keeping us out of a perceived recession.” — Carl K., Brookline
“Post-COVID inflation is easing. Unemployment is low. The economy is strong. If you stay the course, mortgage rates will come down again (although perhaps not to the historically low rates we now take for granted).” — EJ, Maynard
Boston.com occasionally interacts with readers by conducting informal polls and surveys. These results should be read as an unscientific yardstick for readers’ opinions.
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