December 4, 2023
Increased prices are making people angry — but they’re still breaking spending records
Joanne Hsu addressed the University of Michigan’s Research Seminar in Quantitative Economics, asking, “Why do consumers feel so down when the economy seems so strong?” She said that consumers know the economy has improved, but while inflation has fallen substantially since the summer of 2022, but they are frustrated that prices remain high.
“Consumers are still really uncertain about what’s coming up ahead. With considerable uncertainty amid wars in the Middle East and Ukraine, as well as a U.S. election less than a year from now, consumers are concerned about the various ways the economy could take a turn for the worse.”