Economic sentiment in 2025–2026 is near record lows despite strong measures like low unemployment, solid real GDP growth (Atlanta Fed GDPNow around 4%), and expansionary ISM readings, while inflation has ticked up to about 3.8% partly tied to oil-price spikes from the war in Iran. Traditional sentiment indicators are described as increasingly politicized, yet pessimism appears to be broadening beyond partisan lines, reflecting concerns about job-market instability and rising living costs. A key explanation is that social media amplifies dissatisfaction: negative experiences are voiced more loudly, algorithms reward outrage, and constant exposure to wealthier lifestyles heightens resentment and feelings of relative decline. As a result, the economy can be growing while many people experience it as worse, especially if gains are unevenly distributed.
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Chapters:
00:00 Introduction
02:48 Hard Data Still Strong
04:47 War Shock Not Whole Story
05:28 Social Media Gives Voice
10:21 Algorithms Amplify Negativity
12:16 Seeing How Elites Live
14:30 Uneven Growth and Resentment
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