Inflation is at 2.4%, the lowest rate since 2020, but many Americans still think things like groceries and other essentials are too expensive.
A forum held this week by American Public Square at the National World War I Museum and Memorial discussed why people still feel financially strained despite data that shows a promising economic outlook.
According to Christopher Rugaber, an economics reporter for the Associated Press, one big reason for that disconnect is the U.S. is experiencing a “K-shaped” economy,
High-income earners are doing well and accounting for 50-60% of spending, while low income earners are spending less.
“It does help explain some of the strangeness of, we see top line data looking fairly good, unemployment rate is low, the economy is growing. But you see surveys that are showing people are pretty gloomy about the economy,” Rugaber said. “And so that's one potential answer, is that a big chunk of people just aren't doing that great, and others are helping uphold that.”
- Christopher Rugaber, economics reporter, Associated Press
- Thomas White, workforce and economics impact reporter, The Beacon
