In a segment on MSNBC's *Katy Tur Reports* this Thursday, NBC News Senior Business Correspondent Christine Romans discussed why many Americans remain pessimistic about the economy. Romans noted, “We’re still haunted by recent inflation, so people are very focused on prices and may not see the broader economic picture,” referencing how factors like the COVID pandemic, insurance, housing, and childcare costs contribute to public perception.
Romans explained, “Polls show people feel the economy is doing poorly, largely due to lingering inflation scars. The COVID pandemic was tough, and while the topline economic numbers are strong—the International Monetary Fund calls ours the strongest economy globally, and *The Economist* even dubbed the U.S. 'The Envy of the World'—many Americans still feel anxious about their finances.”
She added that there’s a surge in small business creation, job availability, and wage growth. “Wages rose by 4.6% recently, outpacing inflation. But people are so impacted by recent inflation that they’re focused on prices rather than the larger context. Other challenges, like high car and home insurance rates, the struggle to buy homes, and child care costs, also weigh on them,” Romans said.
Romans emphasized that “the cost of college remains a significant concern for younger generations.” While she acknowledged that wages are strong and the stock market has performed well, she pointed out that “only half of Americans have direct exposure to the stock market.” She reflected on how the COVID pandemic has diminished public optimism, stating, “It feels like COVID stole our optimism. In the past, like in the ’90s, people might have felt uplifted by strong economic indicators. But that’s not the case today. There are foundational aspects of the American economy that don’t benefit everyone.”