Geoff: Today's latest jobs report is proof again of a labor market that has been resilient and often stronger than expected. That was part of the president's message during the state of the union last night as well. But many Americans don't feel the economy is strong overall, or helping them or their families. A number of polls have shown this, including one from "The New York Times" this week that found 51% of Americans believe the country's economic conditions are poor right now. So, why the disconnect? There seem to be quite a few reasons. Economics correspondent Paul Solman explains. >> I think if you talk to the average person on the street, they will say the economy is not doing well. And I tend to agree. Paul: Seth reed is a teacher in northern Virginia. >> I am doing fine, but still living paycheck-to-paycheck. Paul: Alyssa Gonzalez has the tree like Lori in Denver. >> I have accepted more of a realistic view of the world where things are not going to get better. Paul: Nonprofit organizer Ari Hanks was mostly synced. >> I don't feel great. Paul: But how can they say that if the economy has been doing so well? Low unemployment, inflation easing. >> There are social media videos every day. Paul: Kyla Scanlon is a writer, social media personality, and demystify or of economics. >> I am getting hundreds of comments a day asking about how people are perceiving the economy because I will do a video like inflation is going down, the market is ok, and people are like, I feel really bad. Paul: The word she coined for what she was hearing, vibecession. >> It is a disconnect between consumer sentiment and economic data, and why people feel bad about the economy despite the metrics telling them the economy is doing ok. Paul: In fact, the consumer sentiment index has noticeably improved, says one economist. >> People seem more willing to admit that that long nightmare of the post-pandemic recession and hard times and recovery behind us, and people seem more willing to accept that people are -- that things are doing ok. Paul: But many Americans say they are unhappy with the economy. Why the disconnect? The key reason for a lot of people, prices are still higher than they were pre-covid. Seth reed used to shop at safeway right next to his apartment. Now he drives to Aldi for less expensive groceries. >> Everything is going up in price. Paul: But lower inflation doesn't mean lower prices. It just means prices are rising more slowly than they were, Scanlon explains. >> If you are thinking that inflation going down means prices are going down, you're going to be very confused when you go to the store and your box of cereal is not cheaper. But I heard on the media that inflation is going down. What is going on? Paul: Well, cereal prices barely budged this past year but rose more than 25% during the pandemic, and still are not back to where they were pre-covid. Same for eggs, which nearly tripled, but at today's average of $2.50 a dozen, double what they were pre-covid. Alyssa Gonzalez looks at cheaper items. >> Canned foods, boxed foods. 12 pack of ramen noodles because it gets the job done. Paul: And food manufacturers themselves have pushed prices higher than their costs, says Scanlon. >> They are out there raising prices and they are telling you that, in their earnings reports. We are going to expand our profits. Paul: This is so-called greatflation, firms -- greedflation. >> Duh, they are going to do that. They are companies. That is their goal, to make a bunch of money. Paul: Then there is shrinkflation, firms charging the same for what is a lesser quantity. Here are recent examples flagged by consumer world. >> You are getting less and paying more. The debit at the bottom of sauce containers is becoming more so you're getting less sauce. It is ridiculous, to be honest. Paul: There is one group especially sensitive to food prices, the least well off, who spend more of their budget on food. >> They are not able to make ends meet. Paul: Eric hicks runs a Denver area food bank. >> There are members coming to services who are not able to pay for the rising prices in groceries and food and other resources. Paul: Get this -- cheaper food went up at twice the rate of premium foods during the pandemic. But to Scanlon, the real killer is housing. House prices have gone up, mortgage rates, and people's rents. >> When you tell them that things are getting cheaper but their rent is not getting cheaper and their food is not getting cheaper, of course they are going to feel that. >> It feels a little daunting to know I will be renting for a while and renting price is going up so much every year. Paul: For Alyssa Gonzalez, home is out of the question. >> I don't believe I will be able to buy a house. It is something I have just accepted. Paul: So many face a discharge -- additional stressors, with the end of covid checks and a higher cost of borrowing. Then, there is the renewal of student debt payments. Gonzalez has over $100,000 worth. >> If I factor that into my normal bills of close to $2000 a month for just rent, then groceries and all the other things, it is not feasible. Paul: Not feasible for Gonzalez to pay back her student loans. >> It sucks because I am not ever going to be able to pay off that debt, and it is one of the things that impacts me with my credit and being a business owner and being able to apply for loans or get cars or anything like that. It kind of feels unsolvable, but it is so big of a problem there is nothing I feel like I can do about it. Paul: Even yuppies feel worse than they did during covid. >> The yuppie lifestyle subsidy was in full force. Airbnb was cheap, food delivery apps were cheap. Paul: But not anymore, so Brett mead's fellow yuppies feel worse off. >> I think they feel worse because their cost-of-living has gone up. Paul: But others think something else is driving the pessimism. >> The way people answer these public opinion poll questions has fundamentally changed. What they tend to say instead of, here are what I have read and what I have seen around me, they think, is my team winning right now? My team being Republicans or Democrats. Those who lean Republican reliably now are more optimistic under trump and pessimistic hunter Biden, and Democrats are the opposite. What that tells us is less about the reality of the economy and more about how polarized views have become. Paul: Even so, the economic reality for Seth reed, compared to that of his parents at his age, is kind of a bummer. >> They had a house, two cars, a stable income. They were definitely much more stable than I feel. Rising costs of childcare care are the number one reason why my fiance and I haven't even thought about having kids in the near future. Paul: So, maybe it should come as no surprise that statistically good economy for many, but for more than a few Americans, bad economic vibe. ♪♪
