Americans’ Perception vs. Reality: The “Vibecession” and Economic Misconceptions

The U.S. economy has been a hot topic of discussion among Americans, with many expressing concerns about the financial outlook in the post-pandemic years. According to a CBS News poll, only one-third of Americans described the economy as good earlier this year. However, a new poll from Harris/The Guardian reveals that there is a significant gap between how Americans perceive the economy and what key indicators show, leading to what some are calling a “vibecession.”

The poll found that upwards of half of Americans are misinformed about basic financial issues, with many getting key economic trends and data wrong. For example, about 56% of those polled believe that the U.S. is currently experiencing a recession, despite the fact that the GDP has been growing at rates that exceed economists’ expectations.

When asked about the performance of the S&P 500 index in 2024, about half of those polled said that the stock market is down for the year, when in fact it has climbed 11%. Similarly, many Americans believe that the current unemployment rate is near a 50-year high, when in reality it is near a 50-year low at 3.9%.

In terms of inflation, the poll found that about 7 in 10 Americans believe that inflation is rising, despite the fact that it has been declining since reaching a peak in 2022. The most recent CPI reading showed inflation at 3.4% in April.

Overall, the disconnect between Americans’ perceptions of the economy and the actual economic indicators highlights the need for better financial education and awareness among the public. It’s important for individuals to have an accurate understanding of the state of the U.S. economy in order to make informed decisions about their financial well-being.