Day 325 – Why are People Pissed Off About the Economy?

Sunday, November 23, 2025

I haven’t been writing much about the daily stuff going on because, well, what’s there to say?

It’s all out there.

However, Paul Krugman has written about the economy. For those who don’t know Paul, he’s an economist and he won a Nobel Prize for his economic work. He does something that a lot of people who talk about the economy don’t do. He uses facts, figures and charts. Many just use charts and black tip Sharpies.

Paul asked the question why are people feeling bad about the economy? Because he points out (using the aforesaid facts and figures) it’s not too bad. However, the perception by many is that it is that bad. So why, he asks, the disconnect?

There are several factors:

1. People associate rising wages with their efforts and rising prices (ie inflation) with something they don’t like. Paul has shown that when wages keep up with rising prices, people are pissed off. Their hard work is being negated by the evil inflation.

2. People’s outlook on the economy is tied to their political affiliation. This seems to be the best indicator of how one “feels” about the economy.

3. Negative thoughts about inflation take a long time to subside. Inflation hit its peek two to three years ago, yet people remember.

4. Media does not seem to factor into the equation much, but partisanship does. One side, Republicans, seem to scream louder when Dems are in and this has a measurable effect on people’s thoughts about the economy.

So Paul asks why hasn’t the screaming subsided now that Trump is in? Well, there is at this time a difficult time finding a job. Prices have not come down as Trump promised to do, and people remember that. Add to this his tariff policies and the chaotic nature of his economic policies and businesses are waiting to act because they aren’t sure about the future.

The solution? Paul says is competent and honest leadership.

Well, I guess we’ll have to wait three more years for a chance at that.