It’s The Economy, Stupid, But That Depends on Your Definition of “Economy”
The “vibes vs economic theory” discourse is in full swing, with too many hiding behind nomenclature to avoid the human factors involved.
In the New York Times, Nate Cohn delves into the ongoing debate over how folks feel about the economy, how the economy is doing on paper, how the economy is doing in real life, and how politics is both affected by and filters those things. After breaking down the “case for vibes” verses “the case for the economy explaining all” Cohen concludes and looks ahead thusly:
After a few months of stubborn inflation, rising gas prices and interest rates, and a falling stock market, the last month or so has brought excellent economic news. The stock market has gone up nearly 15 percent since New York Times/Siena College polls were in the field in late October. The inflation trajectory looks good. Mortgage rates are falling. Gas prices are down. Once-skeptical economists have declared that a “soft landing” seems at hand. And now the Fed is forecasting rate cuts, which augurs growth, confidence in lower inflation and eventually a return to a more normal economy.
Put it together, and the big economic barriers could…
