Despite Economic Improvements, American Consumers Remain Dissatisfied

Rising Consumer Debt and Weakening Retail Sales Indicate Struggles Despite Lower Inflation and Unemployment Rates

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.