U.S. News and World Report (December 30)
“The past two years have defied economists’ predictions for a slowing economy, or even a recession.” Despite increased risk and uncertainty arising from the “wild card of Trump,” the U.S. economy “should remain strong” as it is buoyed by “a moderating labor market, lower interest rates and strong household income.” Household wealth has surged 40% to $150 trillion since 2020, “while debt service payments measured as a percentage of income have largely remained static.”
Tags: Defied, Economy, Household income, Interest rates, Labor market, Predictions, Recession, Risk, Slowing Economy, Trump, U.S., Uncertainty, Wealth Debt service, Wild card
The Atlantic (January 4)
“The illusion persists, despite all evidence…. Poll after poll shows that at best, only 20 percent of Americans say the economy is doing better than it was a year ago.” But by very valid measures, many more are doing better: “Unemployment is lower. Wages are growing. Inflation is declining…. These are tangible improvements in household income that should be cheering people up. And still, they are not.”
Tags: Better, Economy, Evidence, Growing, Household income, Illusion, Improvements, Inflation, Measures, Poll, Tangible, Unemployment, Wages
Time (September 13)
“The median household income for a family in America surged last year, the first time since before the Great Recession when there was a year-over-year increase in earnings. Median household income in the United States was $56,516 in 2015, an increase of 5.2% in inflation-adjusted dollars from the 2014 median of $53,718.”
Tags: Earnings, Family, Great Recession, Household income, Surge, U.S.
Financial Times (January 13)
“Watch Japan” in the next year to find out more about the inevitability of Larry Summer’s secular stagnation thesis. “Virtually all western economies have seen wages stagnate or fall in recent years.” If Japan, “the world champion of secular stagnation,” succeeds in raising household incomes, this will present the hope that other developed nations can also escape the grip of secular stagnation.
