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Planet Money · April 17, 2024 · 23m
The Vibecession: Why the Economy Feels Bad When the Numbers Say Good
Planet Money investigates the 'vibecession' — the paradox that economic indicators (unemployment, GDP, inflation) improved in 2023-2024 while consumer sentiment remained deeply negative. Why does a good economy feel bad?
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Canon
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Planet Money explores whether the 'bad economy' narrative in media and social media is a self-fulfilling prophecy: people hear 'the economy is terrible,' feel confirmed in their pessimism, spend less, and actually make the economy worse.
Highlights
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Economic sentiment is driven by prices, not growth — and prices have a longer psychological memory than wages
Planet Money explains the vibecession: inflation came down from 9% to 3%, but prices didn't fall — they just stopped rising as fast. A carton of eggs that cost $2 in 2020 now costs $4. The 3% inflation rate means it'll cost $4.12 next year. The rate improved; the price didn't. People feel the price, not the rate.Was this useful?