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Cake day: July 10th, 2023

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  • To be sure, Briggs said inflationary pressures are likely also hurting confidence. But he said “lower happiness” at large can partially explain the continued disconnect between sentiment and other measures of the economy’s performance, such as gross domestic product growth or stock market performance, that offer rosier views.

    It’s almost shocking how out of touch they are. The wealthiest 10% of Americans own 93% of stocks according to a 2024 article.

    Briggs also cited a connection between lower overall happiness readings and decreasing trust in institutions. He found that lower trust in these bodies caused a “disproportionate amount” of the decline in net happiness in recent years.

    Given the connection to non-economic variables, consumer sentiment readings may not improve even if the economy continues chugging along, Briggs said. As a result, consumer sentiment may become a less useful predictor of economic dynamics, he said.

    It’s like a parody, or something the onion would write. Economists aren’t serious people.