Overview

• Despite macroeconomic indicators showing a strong economy, American consumers are dissatisfied with the current economic situation, with polls showing low approval ratings for the Biden administration's economic management.
• Inflation has decreased from close to 9% to a little more than 3%, and unemployment rates have also dropped, but real wages have only just returned to pre-pandemic levels.
• Consumer debt is rising again and retail sales have weakened, indicating that excess savings from pandemic-related financial assistance are dwindling.
• Efforts to increase real wages include reducing inflation and increasing nominal wages, but these measures face challenges such as potential increases in unemployment and conflict with efforts to reduce inflation.
• Despite the Biden administration's focus on initiatives like infrastructure spending and re-shoring of manufacturing industries, consumers continue to struggle financially, with many dipping into savings and retirement funds to cover basic expenses.