Economic pessimism is sticky. And when perceptions are at odds with reality, it can have electoral consequences.
by Akshay R. Rao
Star Tribune
The punditry sections of many publications report what appear to be a set of astonishing results from a recent Harris Poll. Half or more Americans believe the U.S. economy is in recession (it is, in fact, growing), the S&P 500 is down (it is up some 25% in the last year) and that unemployment is almost at a 50-year high (it is at a 50-year low). Similarly, perceptions about runaway inflation persist even though inflation has declined dramatically in the last two years. To paraphrase Winston Churchill, this disconnect between perception and reality is a puzzle wrapped in a mystery shrouded in an enigma.