For the past six years, Americans have been hearing that this economic expansion is lackluster. They’re now OK with it, and moving on.
That’s how Richard Curtin, director of the University of Michigan Survey of Consumers, characterized the disconnect between weaker economic growth and improving household confidence. A report…showed the group’s consumer sentiment gauge rose to 96.1 in June, the second-highest reading in eight years…
The gain in confidence “is due to both an improving economy from the consumer perspective, but it also may reflect the acceptance of the diminished economic prospects in the years ahead,” Curtin said. “They rate what we would have considered in a bygone era to be rather modest or mediocre growth more positively.”
Families are even shrugging their shoulders at moderate income expectations, primarily because they believe low inflation is here to stay. The…chart below shows what households say are the odds that their incomes will beat inflation over the next five years.
“The divergence between declining economic forecasts by policy makers and economists and the surge in optimism among consumers has rarely been greater during the past half-century,” Curtin said.
Americans are accustomed to mediocrity throughout the whole software of our lives, our culture. Between conservatives and cowards, Congress is a mediocrity. The most overpriced healthcare system in the world is a preposterous mediocrity – if you can even afford access. Government has moved from being a care provider to Big Brother – out of fear of foreigners. The 19th Century all over again.
Yeah, the hardware works. We can buy hot cars and economical cars and even economical hot cars. Our military can turn any city in the world uninhabitable in a week. We have more computing power in our pockets than corporations could purchase 50 years ago – and the music they play is another mediocrity.