J.P. Morgan’soutlook for 2024said that it will probably be the year when the U.S. consumer will begin to bend, although not yet break.There are quite a few reasons why they believe this: diminished excess savings, plateauing wage gains, the restart ofstudent loan payments, an uptick in subprime auto and millennial credit card delinquencies… The list goes on.But to find out what the people think of the economy and how they’re navigating its challenges, the subredditr/FluentInFinanceistheplace to jump into. With 326K members, this vibrant community is a hub for insightful discussions, advice, and, most importantly, memes on all things money.This post may includeaffiliate links.

J.P. Morgan’soutlook for 2024said that it will probably be the year when the U.S. consumer will begin to bend, although not yet break.

There are quite a few reasons why they believe this: diminished excess savings, plateauing wage gains, the restart ofstudent loan payments, an uptick in subprime auto and millennial credit card delinquencies… The list goes on.

But to find out what the people think of the economy and how they’re navigating its challenges, the subredditr/FluentInFinanceistheplace to jump into. With 326K members, this vibrant community is a hub for insightful discussions, advice, and, most importantly, memes on all things money.

This post may includeaffiliate links.

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These memes illustrate some of the most important monetary questions that we ask ourselves on a regular basis: Are you better or worse off financially than you were a year ago? Do you think you’ll be better off a year from now? And where do you see the country headed in the next five years?The University of Michigan also raises them (and other similar ones) to calculate the Consumer Sentiment Index, an economic indicator measuring how people feel about the economy.

These memes illustrate some of the most important monetary questions that we ask ourselves on a regular basis: Are you better or worse off financially than you were a year ago? Do you think you’ll be better off a year from now? And where do you see the country headed in the next five years?

The University of Michigan also raises them (and other similar ones) to calculate the Consumer Sentiment Index, an economic indicator measuring how people feel about the economy.

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“It’s a measure that we can compare over time and get a pulse on the attitudes of consumers,“saysJoanne Hsu, director of the Surveys of Consumers at the University of Michigan. “Which is important given that consumer spending is over two-thirds of GDP.“That survey and others demonstrate there is a pervasive sense of disconnect between the overall economic picture and how people feel about the economy.Despite slowing inflation, a healthy labor market with record-low unemployment, and stocks that remain in a bull market, consumer sentiment remains below pre-pandemic levels.

“It’s a measure that we can compare over time and get a pulse on the attitudes of consumers,“saysJoanne Hsu, director of the Surveys of Consumers at the University of Michigan. “Which is important given that consumer spending is over two-thirds of GDP.”

That survey and others demonstrate there is a pervasive sense of disconnect between the overall economic picture and how people feel about the economy.

Despite slowing inflation, a healthy labor market with record-low unemployment, and stocks that remain in a bull market, consumer sentiment remains below pre-pandemic levels.

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The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 65.6 this month, compared to 69.1 in May.

Before the coronavirus pandemic, the index stood at 101.

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In 2024, the Pew Research Center alsoaskedAmericans to share their views of the nation’s economy, and about three-in-ten (28%) rated them as excellent or good, while a similar share (31%) said they are poor and about four-in-ten (41%) view them as “only fair.”

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However, people usually see their country’s economy through their personal financial circumstances — and those can vary widely.

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A recent Brookings Institution analysissuggestedthe tone of news coverage can also have a strong influence on the disconnect between actual economic performance and how individuals perceive it.

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We would all like to hear that tomorrow is going to be brighter than today, but the aforementioned J.P. Morgan paper concluded that elevated trade tensions with China, the ongoing Russia-Ukraine war, and conflicts in the Middle East all point to continued uncertainties and risks heading forward.

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How Do We Fix It?

Brilliant For The Rich, But Very Painful For The Rest

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Neilas Šurkus

Mindaugas Balčiauskas

Eligijus Sinkunas

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